Hello Anne,

All signs point to a market that will continue to struggle in 2010. It does appear that the home buyer tax credit will get extended and expanded to include more buyers, but I am not sure that is going to be enough.

Unemployment continues to be high and home values continue to fall. That will lead to more distressed sellers. The banks are also holding thousands of properties that have not even come on the market yet. This has been called "shadow inventory". When these huge numbers of bank owned properties hit the market, it will be a huge drag on prices and a huge increase in inventory. That will be great for buyers, but will really hurt sellers that are looking for "retail" prices.

Homes are continuing to sell and not all buyers want to deal with the work or hassle of a distressed property, so the market will continue to move forward, but don't expect record sales or any appreciation in the near future.

I am not a pessimist and have always maintained a positive outlook on housing and real estate, that is how I earn my living, but I am being a realist here.

Hope that helps and good luck!

Chris Clark