Sales of U.S. existing homes rose in February for the first time since July as prices posted a record drop from their year-ago level, but economists said it was unlikely the market had reached a bottom.

The National Association of Realtors on Monday said sales of previously owned homes rose 2.9 percent in February to a 5.03 million-unit annual rate, bucking expectations on Wall Street for a decrease.

While the rise broke a six-month streak of declining sales, prices continued to slip. The trade group said median prices fell 8.2 percent from their year-ago level to $195,900. It was the biggest year-on-year drop on record dating to 1968.

Be careful that you don’t see think that we have reached the bottom in housing. As many of you already know the real issue is the millions of American homeowners who have no home equity or are upside down in their homes.

The pick-up in existing home sales helped cut into the bloated inventory of unsold homes on the market. NAR said the inventory fell 3 percent to 4.03 million units at the end of February. At February’s sales pace that represented a 9.6 months’ supply, the slimmest inventory since August but still high by historical standards.

Remember, this doesn’t count the unsold new construction inventory. Realistically, most markets across the country have over a years worth of supply.

“That’s not much of an improvement in inventory,” said Gregory Miller, chief economist at SunTrust Banks in Atlanta. “As long as bank lending standards stay as tight as they have been, it will be a long correction process.”

NAR also reported that sales decreased by 1.1 percent in the West, but were up 11.3 percent in the Northeast, 2.5 percent in the Midwest and 2.1 percent in the South. Nationally, existing home sales have tumbled 23.8 percent over the past year.