I have posted a chart for Contra Costa County Real Estate existing home sales from December 2001 through September 2009. This chart uses a 12-month moving average of data sourced directly from the Contra Costa Association of Realtors MLS.

How to read this chart: when the market momentum reading climbs from below the "0" line - indicates a trend change has occurred from a downtrend to an uptrend. Increasing demand usually indicates increasing property values. When the marketing momentum reading falls from above the "0" line to below the "0" line signals the trend in existing home sales has changed from an uptrend to a down trend which is a negative sign indicating decreasing home buying demand. 

This chart is one of five key real estate indicators called "vital signs" used to track local real estate market trends. Existing Home Sales is Vital Sign #1.

"The Campbell Method" is a proven system for buying and selling real estate for maximum profits. Based on five key real estate indicators- called "Vital Signs" - The Campbell Method is a clearly defined approach to real estate investing that shows you how to anticipate the peaks and valleys of real estate cycles with incredible accuracy. These Vital Signs act as "leading indicators" and give you as much as 3 to 6 months advance notice to the direction real estate prices are likely to take, long before it becomes obvious to the general public.

I recommend that you purchase and read the book "Timing the Real Estate Market"- Robert Campbell. Log on to http://www.realestatetiming.com/ to learn about The Campbell Method, purchase the book and Market Momentum software.

Here is what Timing the Real Estate Market shows you...

How to identify the best time to buy a home- and the best time to sell

How to maximize real estate investment profits - and avoid losses

How to identify the sweet spot in real estate cycles - where the prices can go full throttle through the roof

How to identify the four stages of all real estate cycles - and position yourself to have an overwhelming advantage when you buy and sell

How to read the signals that tell you when the market is about to change

How to avoid real estate's single biggest mistake

Ten cardinal rules to follow - that guarantee optimal real estate success

Why economists and market forecasters are usually dead wrong.