The average price for a HDTV increased more than 10 percent in February, according to Retrevo.

We’ve seen HDTV prices fall since about May of 2008, reaching a 35 percent drop in January 2009.

Retrevo CEO Vipin Jain says the Super Bowl and Circuit City bankruptcy had a lot to do with the falling prices.

“As the economy and consumer spending weakened, manufacturers and retailers were offering steep discounts during the holidays and leading up to the Super Bowl — both important seasons for HDTV sales. This meant great deals for consumers, but hurt the bottom lines of TV makers.

The bankruptcy and liquidation of Circuit City may have also played a factor in keeping prices down. Now that deep discounts from the all-important holiday and Super Bowl seasons are over, excess inventory is clearing out of the channel and merchants are returning to running their business at more sustainable price levels. We’ll see if this trend is sustainable. Nevertheless, there are still great deals to be had if you know where to find them.”

Retrevo also found that demand for TVs spiked during the holidays and in January, before softening heading into January and March.

According to DisplaySearch, total flat-panel TV revenue fell 3 percent year-to-year (Y/Y) in Q4 2008 for first annual decline in any quarter. LCDs also fell Y/Y for the first time ever, dropping 2 percent from 8.9 million units in Q4 2007 to 8.7 million in Q4 2008.