WASHINGTON -- A gauge of Americans who signed contracts to buy homes fell in April from nearly a two-year high in the previous month.
The decline was the biggest in a year. Still, sales are well ahead of last year's level for the same month, suggesting the housing market is improving slowly.
The National Association of Realtors said Wednesday that its index of sales agreements dropped to 95.5, down from March's reading of 101.1. A reading of 100 is considered healthy. One year ago, the level was 83.5.
Contract signings typically indicate where the housing market is headed. There's a one- to two-month lag between a signed contract and a completed deal.
The decline could be a sign that a milder winter accelerated some home sales that normally take place in the spring.
Ian Shepherdson, chief U.S. economist at High Frequency Economics, said pending home sales rose in the first quarter of the year at a 28 percent annualized rate. Most economists were expecting a decline in April.
"The decline is bigger than we expected, but the underlying upward trend is still intact," Shepherdson said.
Contract signings rose 0.9 percent in the Northeast in April from March. But they fell in the other three regions. Still, all four regions reported higher sales activity last month than in April 2011.
The March national reading was the highest since April 2010, the final month that Americans could qualify for a federal home-buying tax credit.
That helped drive completed sales of both previously occupied homes and new homes in April near two-year highs.
Home prices rose in March from February in most major U.S. cities for the first time in seven months, according to the Standard & Poor's/Case-Shiller index.