The new year could be the best year in real estate in years, but the housing recovery still remains fragile and challenges remain, says Dave Liniger, RE/MAX co-founder and chairman. 

Liniger recently offered up some of his predictions for the new year:

1. More buyers and sellers return to the housing market. 
2. Home sales increase 6-7 percent while home prices increase 3-4 percent. 
3. Inventory of for-sale homes will hit bottom. 
4. Higher-priced listings begin to sell more. 
5. The number of distressed properties continues to drop. 
6. The shadow inventory continues to fall. 
7. Short sales rise, reaching a peak. 
8. Mortgage rates rise slightly by year's end from record lows. 
9. Lending remains constrained for home buyers. 
10. Home affordability remains at record highs.  

Source: REMAX