In another sign that the housing market may be picking up, sales of new homes increased 4.7% in February, the Commerce Department reported today.

There is still room for improvement as February's numbers were 41.1% below those of February 2008.

Sales of new homes were at a seasonally adjusted annual rate of 337,000, which projects what the rate would have been had sales been at that level all year.

By contrast, the rate for January was 322,000 and the rate for February 2008 was 672,000.

The median price for a new home was $200,900 and the average price was $251,000.

February's new home sales fell from their January levels in the Northeast and Midwest by 3.3% and 9.7%, respectively. They increased in the South and West by 9.7% and 6.6%, respectively.

The year-to-year sales figures declined in all four regions: 54.2% in the West, 38.5% in the South, 35.1% in the Midwest and 25.6% in the Northeast.

Today's figures are the second bit of good news on the housing front this week. On Monday, the National Association of Realtors reported that existing home sales increased 5.1% last month.