What's Your Outlook On 2009?

An optimist thinks the glass is half full. A pessimist thinks it's half empty. I'm a realist. I think the glass is twice the size that it should be. But forgive me if I'm leaning towards guarded optimism for the 2009 housing market. Good news has been rare and isolated but for the first time in years, there's encouraging news on multiple fronts. In addition to the anticipation and hope that comes with any new presidency, especially one as historic as this, interest rates are at a record low, an influx of funds has given hope to the mortgage and auto industries, and there are signs that the credit market is loosening up.

To be sure, not all the news is cheery. Treasury prices have risen, the stock market continues to be anemic, unemployment continues to rise, and the news from several companies planning to announce fourth quarter earnings this week is expected to be disappointing (sorry to bring you back down to earth. I said I was a realist). Still, after the last two years I think we can all be encouraged by some positive signs.