The National Association of Realtors (NAR) Thursday morning released its data on pending sales of existing homes in December. The pending home sales index fell 3.7% from a downwardly revised index reading of 104.6 in November to the December reading of 100.7. That’s 6.1% higher than in December 2013, when the index reading was 94.9. The consensus estimate called for a month-over-month increase of 0.9% in pending sales.

The pending home sales index reflects signed contracts, not sales closings. An index reading of 100 equals the average level of contract signings during 2001.

While the month-over-month decline is the largest since December 2013, the index rose 11.7% for the year, its largest year-over-year gain since June 2013. The NAR’s chief economist noted:

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.

Home sales fell in all four of the NAR’s geographic regions. Pending home sales in the Northeast decreased 7.5% in December, posting an index reading of 82.1, up 6.3% from December 2013. The index fell 2.8% in the Midwest but is 1.9% below last December’s reading. Pending sales slid 2.6% in the South but are 8.6% higher than a year ago. Sales dropped by 4.6% in the West, to an index score of 94, but are still up 6.3% over year-ago levels.

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