The National Association of Realtors said on Wednesday that in November, the percentage of pending home sales dropped 0.9 percent. That's quite a drop compared to the last month, when the reading of the gauge was 106.9.

Even the re-sale of homes gauge, that make up for ninety percent or more of the housing market dropped in November to its lowest level noted since April last year.

The data from the Realtor revealed on December 22 that this might have been due to some changes in industry rules which prolonged the length of time it took the buyers to complete the deal.

Compared to the previous year the index rose 5.1 percent on an unadjusted basis following a 2.3 percent growth in the earlier one year period.

Lawrence Yun, chief economist with NAR said, "Home prices rising too sharply in several markets, mixed signs of an economy losing momentum and waning supply levels have acted as headwinds in recent months despite low mortgage rates and solid job gains."

He said, with the housing inventory level right now standing under the levels seen one year back makes new-home construction insufficient to meet demands.

He added, "Its likely supply constraints and faster price appreciation will reappear once the spring buying season begins."