WASHINGTON, Nov. 13 (Xinhua) -- Aided by the home buyer tax credit, the outlook for U.S. housing market appears headed for a sustainable recovery next year, said an expert of the National Association of Realtors (NAR) on Friday.

    Lawrence Yun, NAR chief economist, said the projections are enhanced by a tax credit expansion to more home buyers through the middle of 2010.

    Home resales are projected to total 5.7 million next year, up from an estimated 5 million this year. Prices will climb 4 percent after a projected decline of 13 percent this year, Yun said.

    "Given the success of the first-time buyer tax credit to date, and the need for qualified buyers to continue to absorb inventory that will include additional foreclosures over the coming year, we are hopeful about the impact of the expanded tax credit because it will stabilize home prices," he said, "home prices should rise between 3 and 5 percent in 2010."

    A federal tax credit of up to 8,000 U.S. dollars for first-time homebuyers has helped stoke sales this year. The incentive was set to expire at the end of this month, but the NAR and other housing groups successfully lobbied to get the credit extended.

    Now buyers can claim the credit if they sign a contract by April 30 and close the deal by the end of June. Lawmakers also expanded the program to include a 6,500 dollars credit for existing homeowners who have lived in their current residence for at least five years.

    Yun estimated that the tax credit brought in between 350,000 to400,000 buyers this year and projected that its extension will continue to lift the market by 15 percent.

    The NAR said that existing-home sales are expected to total 5.01 million in 2009, a gain of 2.0 percent over last year, and then are forecast to rise 13.6 percent to 5.69 million in 2010.

    "A steady draw down of inventory will help home values to turn positive in 2010, but risks such as unemployment remain in the economy," Yun said.

    The October unemployment rate jumped to a 10.2 percent, or 26 year high. Economists warned that unemployment might get even worse in the coming months.