U.S. homebuilder confidence holds steady in March amid affordability concerns

WASHINGTON, march 18 (Xinhua) -- Builder confidence for new single-family homes remained steady in march, while housing affordability concerns persist in the United States, the National Association of Home Builders (NAHB) said Monday.

The builder confidence in the market for newly-built single-family homes remained at 62 on the NAHB and Wells Fargo's Housing Market Index (HMI) in march.

Meanwhile, the index component measuring current sales conditions rose 2 points to 68, while the component gauging expectations in the next six months rose 3 points to 71. However, the component measuring traffic of prospective buyers fell 4 points to 44.

"However, affordability still remains a key concern for builders," said NAHB, "the skilled worker shortage, lack of buildable lots and stiff zoning restrictions in many major metro markets are among the challenges builders face as they strive to construct homes that can sell at affordable price points."

Recent government report also showed more clues for the affordability problem, said NAHB experts.

"In a healthy sign for the housing market, more builders are saying that lower price points are selling well, and this was reflected in the government's new home sales report released last week," said Robert Dietz, chief economist of NAHB.

"Increased inventory of affordably priced homes - in markets where government policies support such construction - will enable more entry-level buyers to enter the market," added Dietz.

The HMI is derived from a monthly survey that NAHB has been conducting for 30 years, gauging builder perceptions of current single-family home sales and sales expectations for the next six months. Any number over 50 indicates that more builders view conditions as good than poor, according to NAHB. Enditem