A strengthening in consumer spending and growing policy clarity at the end of 2010 has poised to nation’s economy to perform "above-par" in 2011, which includes a rise in home sales, according to Fannie Mae.

The economy is expected to grow by 3.6 percent next year, compared to an estimated 2.8 percent in 2010, according to a statement. Some increase in housing activity is expected during 2011, but a growth-oriented view isn’t expected until 2012.

"The economy has regained momentum entering 2011 and we see significant improvement in the economy’s ability to grow compared to 2010," said Fannie Mae Chief Economist Doug Duncan. "We expect a small rise in home sales this year, but significant amounts of supply and shadow inventory of expected foreclosures will continue to hamper a robust housing picture for some time."