Why am I cautiously optimistic about the future of our local housing market?

You don't need to tell me --- I know --- home prices are still on the decline.  But here is the basis for my cautious optimism about our local housing market....



This illustrates the trends in general housing market indicators two years ago, as compared to the trends in general housing market indicators today.  What do you think?  Do I have some basis in reality for my cautious optimism?