1:22 PM by Amber Nelson

Sales of existing U.S. homes fell 9.6 percent in February, according to the National Association of Realtors, the first drop in three months. The NAR is pointing its finger at lenders’ strigent loan standards as the reason for the continued housing market woes.

"Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained by the twin problems of unnecessarily tight credit, and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers," said Lawrence Yun NAR chief economist. "This tug and pull is causing a gradual but uneven recovery."

Sales dropped to an annual rate of 4.88 million, down from January’s 5.40 million. The pace is down 2.8 percent on a yearly basis as well. Investors and all-cash purchases continue to make up a significant chunk of the market share. This has been contributing to the falling median house price, which sank to $156,100 in February, a 5.2 percent drop from a year ago. Again, the NAR blames the lending standards.

"The decline in price corresponds to the record level of all-cash purchases where buyers

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