MBA sees double-digit sales growth in 2012

Forecast: Existing-home sales may rebound next year

Home sales will rise modestly next year but won’t really take off until 2012, economists with the Mortgage Bankers Association predict in their latest forecast.

Existing-home sales, which are expected to be about 8 percent lower this year than last, are expected to grow by less than 2 percent next year before increasing by 16 percent in 2012.

New-home sales, which will probably drop 13 percent this year from last, are expected to bottom out in the third quarter of this year and grow by 20 percent in 2011 and 40 percent in 2012.

That, along with price stabilization and an uptick in sales of high-end properties, should drive purchase mortgage originations up 30 percent in 2011, the MBA said.