Fewer sales contracts were signed in November as homebuyers keep off the market. Sales contract signed were 16 percent fewer than the month before.

This indicates the first decline in the National Association of Realtors (NAR) Pending Home Sales index, after nine straight months of gains, which was released Tuesday.

"People took a breather," said David Crowe, chief economist for the National Association of Home Builders.

NAR chief economist Lawrence Yun attributed the drop on the scheduled end of the first-time homebuyers’ tax credit, which refunded up to $8,000 in income taxes for qualified homebuyers.

The credit initially was to lapse on Dec. 1, but Congress extended it through the end of June.

Before that extension was announced, many first time home buyers were rushing to sign contracts to beat the deadline. When the extension was announced, buyers felt less urgency to sign deals, which left November sales depleted.

"It will be at least early spring before we see notable gains in sales activity as homebuyers respond to the recently extended and expanded tax credit," Yun said.

First-time homebuyers had become an increasingly big slice of the market share. NAR estimated that 51% of the sales closings in November were to first-timers.

Despite the steep month-over-month decline in November, contract signings are still 15.5 above a year ago, when the housing market was very depressed. Yun said that increase underlined his contention that the market has gained considerable momentum.

The extended tax credit will, however, provide a boost to a market that already seems to be recovering.

"We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires," said Yun.

Regionally, the Northeast and Midwest absorbed the steepest declines in signed contracts: Both were down 25.7 percent compared to October. In the South, pending sales fell 15 percent. In the West, pending sales declined 2.7 percent.