The National Association of Realtors announced this morning thatexisting home sales fell off in February, sliding 9.6% to aseasonally adjusted annual rate of 4.88 million units inFebruary.

The association reported that the number was particularly starkas it followed an upwardly revised 5.40 million units inJanuary.

“Housing affordability conditions have been at record levels andthe economy has been improving, but home sales are beingconstrained by the twin problems of unnecessarily tight credit, anda measurable level of contract cancellations from some appraisalsnot supporting prices negotiated between buyers and sellers,” saidNAR Chief Economist Lawrence Yun. “This tug and pull is causing agradual but uneven recovery. Existing-home sales remain 26.4% abovethe cyclical low last July,” he added.

The association reported that a parallel survey found thatfirst-time buyers purchased 34% of homes in February, up from 29%in January. This was an increase, but first-time buyer purchaseswere up 42% in February 2010.

All-cash sales made up a record 33% of sales in February, upfrom 32% in January; they were 27% in February 2010. Investorsaccounted for 19% of sales activity in February, down from 23% inJanuary; they were 19% in February 2010. The balance of sales wereto repeat buyers, the association said.