December's Pending Home Sales Index showed a slight decline month-over-month in December, but when comparing year-over-year figures, the report was improved, according to the National Association of Realtors.
The index showed a 3.5 percent decline to 96.6 in December when compared to November's index figure of 100.1. This decline is in the wake of November's highest point in more than 1.5 years, the report noted. In addition, December's figure is 5.6 percent higher than the same point in 2010.
"Even with a modest decline, the preceding two months of contract activity are the highest in the past four years outside of the homebuyer tax credit period," said Lawrence Yun, chief economist for NAR. "Contract failures remain an issue, reported by one-third of Realtors over the past few months, but home buyers are not giving up."
Regionally, the Midwest witnessed a 4 percent rise in pending sales in December compared to the previous month, as well as 13.3 percent compared to the same point in 2010. Both statistics were the best out of any region.
Residential housing reports from multiple experts have suggested that stronger home sales during the end of 2011 may suggest continued improvement entering the new year.