Sales of previously owned homes in the US dropped for the third consecutive month in February 2010 as the number of unsold homes increased, according to the National Association of Realtors (NRA).

Existing homes slipped by -0.6% nationally to an annual rate of 5.02 million units in February 2010, down from 5.05 million in January, however they are +7% above the 4.69 million units from February 2009.

Lawrence Yun, NAR’s chief economist, said: “Some closings were simply postponed by winter storms, but buyers couldn’t get out to look at homes in some areas and that should negatively impact near-term contract activity. Although sales have been higher than year-ago levels for eight straight months and home prices are much more stable compared to the past few years, the housing recovery is fragile at the moment.”

Home sales had previously leaped upwards in September to November 2009 because of the $8,000 tax credit for first-time buyers. Although the tax credit was extended and expanded, sales have remained subdued, increasing concerns that a relapse in the sector which was the main trigger of the worst US recession since the 1930s.

Vicki Cox Golder, NAR president and owner of Vicki L. Cox & Associates, said: “If home buyers want this tax credit there is literally no time to waste. Most buyers spend several months looking at a dozen homes before they make a contract offer, but less than six weeks are left before the April 30 2010 contract deadline. If you’re sure about the kind of home you want and the neighbourhood where you’d like to live, you need to begin working with a realtor now to help you find what you want, negotiate on your behalf and ensure that you meet the necessary deadlines, including loan qualification.”