FIRST TIME HOME BUYERS BURSTING OUT OF THE GATE!!!

First time home buyers accounted for more than half of the sales last month, fueling a higher than expected existing home sales number. (See my March 2nd post about first timers)

Purchases increased 5.1 percent to an annual rate of 4.72 million from 4.49 million in January, the National Association of Realtors said today in Washington. The median price slumped 15.5 percent from a year ago, the second-biggest drop on record, and distressed properties accounted for 45 percent of all sales.

"Lower prices coupled with very low interest rates and an $8,000 tax credit are causing first-time home buyers to dive in,'' said Bill Emerson, chief executive officer of Quicken Loans in Livonia, Michigan. "While it's good to see sales go up, it's more important to see inventories go down. When that happens, only then can you start to talk about a housing correction.''