"Builder confidence has been in a holding pattern the past three months," said National Association of Home Builders Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. "Looking ahead, as the spring home buying season gets into full swing and demand increases, builders are expecting sales prospects to improve in the months ahead."

David Crowe, the association’s chief economist, said the housing market’s foundations remain strong.

"Job growth is proceeding at a solid pace, mortgage interest rates remain historically low and home prices are affordable," Crowe said. "While these factors point to a gradual improvement in housing demand, headwinds that are holding up a more robust recovery include ongoing tight credit conditions for home buyers and  the fact that builders in many markets are facing a limited availability of lots and labor."