For the first time in seven months, existing home sales increased, says the National Association of Realtors. February sales rose nearly three percent over January. That's encouraging says the NAR, but is it enough to spur buyers?

For one thing, the sales pace, even improved, is still nearly 24 percent lower than a year ago, and year-over-year home prices are down over 8 percent.

But that's exactly why home sales are improving. Home sellers have dropped prices enough to be attractive, and coupled with below six percent interest rates, February was a good time for buyers to lock a rate and put a contract on a home.

Consider that home prices in February 2007 were $213,500 and interest rates for the month averaged nearly 6.5 percent. In 2008, prices are $195,000 and interest rates averaged 5.9 percent.

So it shouldn't be surprising that housing inventories have dieted down to a 9.6-month supply from over 10-months on hand in January.

Metropolitan areas are showing the most growth in housing sales with roughly half the major markets showing mild increases. For those communities with the density to support multi-family homes like condominiums and coops (up 3.7 percent), the improvement in sales was even greater than single-family (up 2.8 percent.) by 30 percent. Condos and coops also held their prices a little better than single-family homes at $211,700 or five percent below February 2007. That's despite a 13-month supply on hand.

Market gains were highest in those areas in communities that are helping themselves -- like Oklahoma City -- which has put millions into the revitalization of its downtown and has plans to extend its scenic historic district water feature, the Bricktown Canal, through the warehouse district around the city.

They're also improving in areas that were depressed because of overspeculation such as the Western segment dominated by California, Nevada and Arizona. Existing-home sales in the West are down 13.4 percent from a year ago, and the median price is down the most of any region at 29.2 percent. But the good news is that sales slipped only one percent in February, which suggests that the slide could be coming to an end.

One month doesn't make a spring, things could be improving but only if more homes aren't dumped on the market, interest rates hold in a reasonable range, and the credit crisis improves.

One ways to see if there's a positive trend is to watch for the new home sales report from the Commerce Department, due Wednesday.

Published: March 25, 2008

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.