It's good to know that gradual improvement is expected in the housing market next year, with existing home sales edging up 4% to 5% and new home sales edging up even more because of this year's record lows. Interest rates are expected to rise from record 2011 lows to 4.5% by the middle of 2012. "Very favorable affordability conditions will dominate next year as well, which will probably be the second best year on record dating back to 1970."
Based on NAR’s current projection model, existing-home sales would total 4.96 million in 2011. NAR is revising downward existing-home sales totals in recent years although it expects little change to previously reported comparisons based on percentage change.
New-home sales for 2011 are projected at 302,000 this year, a record low, with expectations that they will rise about 23% to 372,000 in 2012.