Local indicators are when you were formerly required to make reservations at your favorite restaurant 3-4 weeks in advance and now you can get in with a 2-week notice. Seeing fewer cars in the parking lots of previously busy shops is another indicator. 

Shifts in buyer behavior here includes lots of 'sleeping on it' nights. You know, we've had markets like this in the past and we've been fine with them. I believe that we are so spoiled by multiple Offers on each and every listing and 0-1 DOM, it almost feels like the market has stalled. It really hasn't. It may simply be more normal, which is fine with me! 

We are also seeing a lot of price reductions. Last week, I had a conversation with sellers of a home that had been on the market a little over a month. I advised them to hang tight on their price - no need for a reduction because buyers are moving more slowly now. We went under Contract a little over list price (had multiple interest) this week! 

I don't try to differentiate between fleeting trends and genuine shifts - I just roll with the punches! Adaptation until the next pivot is how I roll!!

I echo Mr. Richard Alan Naggar - and will add that an increase in price reductions as an indicator of specific market.

Always good to have a finger on the pulse & as you, Lew Corcoran  covered in your worthy question, lots of "tells" out there. My primary belief? The market runs in cycles, never stops & is always beckoning to buyers & sellers. As far as local dynamics? DOM tells a necessary story & lastly, word of mouth shows up but does not stand alone. a local agent knows many things

For real estate? MLS. The stats are all there! 
Overall? Depends on the type of local business.

For many years building trades have had more to do than they had people or time for. And at this time EVERY YEAR HVAC IS slammed. Then in Winter they are again! LOL 
Finally . . . go to the city/county website and they all have economic development updates. 
You can also see who and how many business licenses were issued . . .

and finally, AI is worth a tap (I know I know!) BHC has added a million SF of retail space in the past 10 years. Not bad for a small town of under 100k in the metro area . . .

Pendings 👈😊
Their DOM, their price point and how many.

Sold is historical data, Actives are wishful thinking and Pendings are showing you the true direction of the market. They'll either be below, above or equal to Solds and indicate the market direction and how realistic the Actives are being.

Good question Lew Corcoran , what comes to mind for me is:

#1) the number of for sale signs out there.

#2) the number of help wanted signs out there.

#3) how busy is Menards and Home Depot.

My personal observance here in Minot is that it is still a Sellers market here PLUS there have been several news reports in very recent days telling people that Minot is bucking the National News stating that there are more Sellers then Buyers at this time. This phenomena is State wide in North Dakota as we are growing and growing. 

Lew what speaks volumes of what's happening is my area is the level of new construction both in homes, apartments, office buildings (huge ones).  Cranes are up in the air everywhere we go. Add to that, when a home pops up for sale in our area, sold signs pop up quickly.  A LOT of people are moving here and that is part of why the economy is so strong along with massive plants in the planning stages - which will need thousands + of workers in the near future.

I am not that skilled at predicting shifts, however I am very good at adapting our businesses to fit the needs of our market.

Be out there pressing the flesh and asking questions while keeping your eyes open.

Supply, demand, local job market, pre-build metrics (permits for residential & commercial projects), crime - all things worth paying attention to at the micro level.

Everything boils down to supply & demand, so I look at what causes the demand (general population eg "how many people are reaching first time buyer age VS how many homes are being made available via resale and new build?), and how supply is keeping up.

We are beginning to see broker open houses here and there again.

🧐 There are clues everywhere. I find working with buyers is the best way to understand the listing market. I also speak with my mortgage lenders and other vendors and ask questions about their business. I do listen to national news but keep in mind it is very local. School assignment does affect some neighborhoods here. Other agents, even ones outside of my selling area offer clues to what's happening in the market. I can tell by how many inquiries and how many referrals I get if the market is genuinely picking up. I will say, although the market has slowed, people are still talking about Real Estate. I overhear conversations about Real Estate almost everywhere I go.  

Days on market is the best indicator of activity in a given location.  Sales price to list price would be the second best indicator.