The National Association of REALTORS® (NAR) reports today that the December Pending Home Sales Index decreased 3.7 percent compared to the month before but is still 6.1 percent higher than December 2013. The NAR index is a forward-looking indicator based on contract signings.

NAR Chief Economist Lawrence Yun said the monthly decline could be attributed to the lower inventory of homes available for sale and higher home prices. Click here to read more from NAR.

“Total inventory fell in December for the first time in 16 months, resulting in fewer choices for buyers and a modest uptick in price growth in markets throughout the country. With interest rates at lows not seen since early 2013, the strength in existing-sales in upcoming months will largely depend on the willingness of current homeowners to realize their equity gains from the past couple years and trade up,” Yun said.

In other headlines:

More Buyers in House-Hunting Mode – Daily Real Estate News

Boomerang’ Buyers Set to Surge Back Into Housing Market – Time

Mortgage rates tick up – Freddie Mac