The National Association of Realtors reports that sales of existing homes grew 5.1 percent to an annual rate of 4.72 million during February 2009, from 4.49 million units in January.

It was the largest monthly sales jump since July 2003, first-time buyers accounted for about half of all transactions. The median price of existing homes in the West was $204,600 in February, 5.1 percent below January and 30.3 percent below the February 2008 figure.

Lawrence Yun, the National Association of Realtor’s chief economist, said first-time buyers accounted for half of all U.S. home sales in February, especially in the lower price ranges.

“Because entry-level buyers are shopping for bargains, distressed sales accounted for 40 to 45 percent of transactions in February,” he said in a statement. “Our analysis shows that distressed homes typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the overall median price.”

“If January was a disaster for housing, February may be the rebound month,” wrote Joel Naroff, president of Naroff Economic Advisors. The sales figures don’t yet reflect the new $8,000 tax credit designed to lure even more first-time buyers into the market, should help early summer sales, but how much will depend on the overall condition of the U.S. economy.

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