Cubans hope party congress may loosen home, car sales

* Congress expected to back Raul Castro economic reforms

* Castro has already criticized "excess of restrictions"

* Easier home and car sales would be popular with Cubans

By Rosa Tania Valdes

HAVANA, April 12 (Reuters) - Cubans are watching this week's ruling Communist Party congress closely for new openings to private initiative, above all the right to freely buy and sell their homes and cars for the first time in decades.

A return to pre-revolution private property rights is not on the cards at the April 16-19 party meeting, but there are widely-held hopes the island's highest political body will ease regulations many Cubans view as unjust.

"It's time that one be able to sell what one has. Cars and houses are property, but only formally, because we can do almost nothing with them," said pensioner Antonio Garcia.

While there is legal home ownership in socialist Cuba, property owners cannot lawfully sell their houses. They can only do a swap, or "permuta," for another home, supposedly of equal value.

A thriving "permuta" market exists, and it is not unusual for money to be exchanged, but only underneath the table.