NY home sales to bounce back in 2011

Home sales in metropolitan New York will bounce back in 2011 and rise 8 percent compared to last year, the National Association of Realtors predicted. The NAR’s 1.2 million members saw a rise in December — for the fifth straight month — in the number of contracts signed, the New York Post reported. Home sales hit a low last June but have climbed back steadily, particularly in the New York area, where economists had expected a bleaker forecast. “Forward-looking contracts are expected to show a broad uptick,” said Walter Molony, a spokesperson for NAR, adding that official numbers for December and estimates for the coming year won’t be released until Jan. 20. The vast majority of real estate loans signed in December — 72 percent — were solely for refinancing existing homes, the Mortgage Bankers Association said. The group reported yesterday that nationally, total mortgage applications of all types rose 2.2 percent for the second straight week, due mostly to a 4.9 percent jump in home-financing deals. Separately, Freddie Mac economist Frank Nothaft said that U.S. housing prices will hit bottom this spring and begin to rise again next year. [Post]