After reaching a 19-month high in November, pending home sales declined 3.5 percent in December, according to the National Association of Realtors’ (NAR) Pending Home Sales Index.

Pending home sales represent contract signings but not closings.

November’s pending home sales stood at 100.1 for the nation, just above the “historically healthy” average of 100, designated by NAR. The rate ticked down to 96.6 in December.

Despite the decline, December’s pending home sales are 5.6 percent higher than the rate recorded in December 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, NAR’s chief economist.

While contract failures “remain an issue,” Yun says “[h]ousing affordability conditions are too good to pass up,” and some resilient homeowners are making other offers after their first falls through.

The West outpaced other regions in contract signings in December with a rate of 107.9. Despite recording the highest rate, pending sales were down 11 percent from the previous month.

The South had the second-highest pending sales rate – 101.1 – in December, down 2.6 percent from November but up 4.9 percent from December 2010.

The Midwest was the only region to experience an increase in pending home sales for the month. Contracts increased 4 percent, rising to 95.3. This rate is 13.3 percent above the December 2010 rate.

The Northeast had the lowest pending home sales rate – 74.7 – in December, down 3.1 percent from November and down 0.8 percent from December 2010.