A measure of Americans who signed contracts to buy homes fell last month after reaching a 2 1/2-year high in November. Sales were held back by a limited supply of available homes.
The National Association of Realtors says its seasonally adjusted index for pending home sales dropped 4.3% to 101.7 in December. That's still 6.9% higher than it was a year ago.
The decline signals that sales of previously occupied homes may drop in the coming months. There's generally a one- to two-month lag between a signed contract and a completed sale.
Still, sales of previously occupied homes rose last year to their highest level in five years. And the Realtors' group forecasts that sales will rise 9 percent this year as the housing market steadily recovers. (AP)
