Thank goodness market prognosticators are a lot like weathermen: they run their models, examine the trends and make predictions that are only partly accurate. The 2009 real estate market was supposed to be an absolute disaster—and in several U.S. markets, it was. In Ridgefield, however, there were some disappointments, but by and large our housing market took its lumps and is moving on into 2010.

The recession's most-felt effect on the market was lower home prices. We saw the median price for a single family Ridgefield home decline about 14 percent to $645,000 in 2009, the fourth straight year of falling prices following an historically unprecedented run-up in values through 2005. At the same time, the transaction volume showed an 8.3 percent loss over 2008, closing the year with 220 homes sold. Of the homes that did sell, many more were at the lower end of the value range, shifting away from the larger, newer and more luxurious homes that dominated the market through 2007. (See the accompanying charts for the full picture.)

Many buyers and sellers have been putting off decisions hoping for a market bottom or for prices to rebound. While I cannot say for sure what we will see in 2010, I can tell you that there is a growing optimism among the people I deal with, including buyers and sellers. The stimulus tax credit has had a major positive impact already and will continue to provide benefits  directly and indirectly for all market participants, at least through the end of April, when it is set to expire.

For buyers in 2010: Don't wait. If you are eligible for the tax credit, you need to be seriously looking now to make your best deal by April 30. Also, mortgage rates will likely continue to rise, reducing affordability. Finally, be reasonable in what you expect. Although prices are down, nobody is giving their house away.

For sellers in 2010: Be smart. Understand that Ridgefield's market values are less than you had hoped and that uncontrollable market forces are at play. Attract a buyer with a reasonable asking price for today's market. If you want to sell your house, start now; waiting works against you. Make your house the best it can be. Paint, de-clutter, make repairs. Buyers have more control than in years past, and they demand a desirable product.

I truly believe that pent-up demand for buying and selling, the tax credit and growing economic optimism will make 2010 a pivotal year, that we will see stabilizing prices and that 2009 will be the market's bottom. But I will not provide you with a weather forecast!

Rob Gutman is a real estate agent at Keller Williams Realty and also writes the blog Real Estate Chocolate.