As you can see below there are many predictions that say housing will remain in doldrums for much of 2010 with continued price declines and foreclosure activity hanging over the market.  Investors fear that the Feds are just printing money as a means of staving off further deterioration in housing and other sectors. Bad and ugly.
 
Yes prices will continue to be under pressure particularly in the mid to upper price brackets but there is much evidence that at the entry level prices and inventories relative to sales are firming. Good.
 
We will have a slow start in the first quarter relative to how strong things were in the fall of 2009 but with the tax credit deadlines coming up this spring we expect sales will strengthen. Good.
 
Most predictions are that jobs will recover slowly over the next two to three years so no one is predicting that employment will add measurably to the housing recovery. Ugly. Add on expected tax hikes (Congress forgot to extend Bush era tax roll backs) and even the most bullish forecasts are for weak recovery.  Bad to ugly in the near term.
 
But - the worst for housing is in the past and leading brokerage firms and sales professionals have made their adjustments.  The best will rise and have a strong year in 2010.