Construction of new single-family homes fell flat in March after dropping 9% in February, according to government figures released Tuesday morning.

The Census Bureau reported that single-family starts came in at a 462,000 seasonally adjusted annual rate in March, down slightly from a 463,000 rate in February.

Overall, single-family starts are up 10.5% from a year ago.

Home builders have noticed an increase in foot traffic and increasing buyer interest over the past few months, according to the National Association of Home Builders (NAHB).

However, this interest has “yet to translate into expected sales activity,” said NAHB chief economist David Crowe.

Crowe noted that this hesitance on the part of buyers also reflects tight credit conditions, competition from foreclosures and problems obtaining accurate appraisals.

The Census Bureau report also shows that construction of multifamily units fell 20% in March after a 17.4% jump in February. MF builders broke ground at a 178,000 SAAR in March, down from a 222,000 rate in February.

Multifamily starts are up 8.5% from a year ago.

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