Canada’s Bank of Nova Scotia (NYSE:BNS) put out its 2013 market forecast at the beginning of December. Its analysts see the S&P 500 rising 10% in the coming year, double what Canadian investors should expect. The big reason for the outperformance south of the border according to the bank: “Attractive affordability and low inventories point to a sustained recovery in U.S. housing activity in 2013, a development that could solidify ‘Main Street’ confidence. A pick-up in housing data (starts, sales, prices) could represent the biggest threat to the bond bull market. Homebuilders and lumber companies should perform well.”

While it’s not a massive sample of analyst sentiment, I think you’ll find most of the professional opinion says pretty much the same thing. The housing recovery is real and gaining momentum. Forget the crystal ball. Here is my list of things that could definitely happen to the ...