Which path will the housing market take next year? Read on to find out.

While 2011 will be another challenging year for the housing market, many real estate experts are hopeful about the future and taking action toward recovery. A market comeback is contingent on a solution to the foreclosure issue, which is suppressing home prices and consumer confidence. For that reason, real estate professionals need to educate themselves about buying and selling distressed properties, handling short sales and working with investors, says Margaret Kelly, chief executive officer of RE/MAX and a panelist at the State of the Real Estate Industry forum held during the 2010 Realtors Conference and Expo.

According to Kelly, today's market shouldn't be called "the new normal" because the old market was abnormal. Despite the challenges of the current market, there are also plenty of opportunities, Kelly says, including low mortgage rates, stable prices and a plentiful inventory of homes for sale.

NEXT: McMansions are out; compact housing is in >>

• Find out how to get a great deal on a foreclosed home in FrontDoor's Foreclosure Guide
• Get tips for buying a home in 2011 from our House Hunters Homebuying Guide
• Sell your home fast and for top dollar next year with tips from our Home Seller's Guide