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The extended and expanded homebuyer tax credit could bring more buyers into the market in 2010.

In 2009, the federal government's $8,000 tax credit for first-time homebuyers was a huge topic in the real estate world. The credit was met with mixed reactions: Some said it had little impact on the housing market, while others claimed the credit encouraged thousands of on-the-fence buyers to finally purchase their first homes. The National Association of Realtors, for example, estimates 350,000 homes nationwide were sold to first-time buyers who probably wouldn't have bought a home if not for the credit. The group also reports that about 47 percent of all home sales in 2009 will be to first-time homebuyers, up from 41 percent in 2008.

Hoping to spur the housing market's recovery, the federal government extended the credit -- which was set to expire on Nov. 30 -- and gave buyers until April 30, 2010, to secure a purchase contract. The credit was also expanded to include some existing homeowners, plus buyers with higher incomes. If the original tax credit brought more first-time buyers into the market, the expanded credit should motivate current homeowners to trade up.

• Find out if you qualify for the expanded homebuyer tax credit

• Get tips for buying your first place in our First-Time Homebuyer's Guide

• Learn how to trade up, downsize or buy a vacation home in our House Hunters Homebuying Guide

• Buying or selling a home in 2010? Make it through in one piece with the help of our Real Estate Survival Guide.

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