Christmas ornament wreaths are very easy and quite inexpensive to make (mine was under $20), you just need a few hours to assemble them.
You can make a red and green wreath, a multicolored wreath, a silver and gold wreath, or whatever color/shape/size you desire.
Here are the steps for how to make your own Christmas ornament wreath this year.
You will need:
--50 standard sized ornaments (I will refer to these as the large ornaments)
--25 slightly smaller ornaments (I will refer to these as the medium ornaments)
--15 even smaller ornaments (I will refer to these as the small ornaments)
--A straw, grapevine, foam, or any other wreath form (I used a 14" straw wreath)
--Tinsel garland (I used one 9' strand)
--Decorative ribbon for a bow and/or wire for hanging
--Hot glue gun and 20-40 glue sticks
I purchased most of my materials at the dollar store.
You can use glass or shatterproof ornaments.
Glass ornaments look better (I hate the seams on plastic ornaments) but I chose to use shatterproof ornaments since I have a tendency to break things and I couldn't figure out how to store a glass ornament wreath without it getting broken. 
Prepare Wreath
If you do not plan on using a ribbon to hang your Christmas ornament wreath, you should attach a hanging wire to the wreath prior to decorating.
If you have many strands of tinsel, you may want to wrap your wreath in tinsel prior to adding the ornaments.
Inner and Outer Circle
Using hot glue, attach the Christmas ornaments to your wreath.
Start by attaching one row of ornaments to the inside circle of your wreath so they are flush with your tabletop.
You can use all large ornaments or a mixture of large and small - whatever fits the best.
The Christmas ornament hooks should be faced so they are out of sight. Glue them to your wreath and to each other for stability.
Try to get them as close to each other as possible. After the inside circle is complete, do one row on the outside circle of your wreath. 
Fill In
Once the inner and outer circles are complete, work in sections to fill in your wreath with a mixture of large, medium, and small ornaments.
This step is a bit of a puzzle to get a good mixture of color and size to make the wreath look balanced yet interesting.
Cut the tinsel into small strips to use as filler between the ornaments so you can't see any gap, glue, or the wreath below.
Extras
To finish your wreath, you may wish to add a bow on top.
Your bow can be purely decorative or you can use it to hang your wreath.
You may also wish to add a monogram letter or one large ornament inside your wreath, add beads or crystals mixed in with your ornaments, or use unique ornaments as focal points.
