Lawrence Yun, chief economist for the National Association of Realtors, expects a "soft" first half of this year for housing and the economy and then "notable improvement" in the second half of the year. But U.S. Treasury Secretary Henry M. Paulson Jr. notes in a recent speech that "most forecasters expect a prolonged period of adjustment" in housing.

Who's right? In the long run, both comments may prove prescient because the national housing market is more than large enough to encompass a wide variety of trends in different places and on different timelines. And that means, at the end of the day, you'll need to rely on your own best judgment to make decisions for yourself and your family.

So how can you figure out when home prices and sales hit bottom and begin to recover in your neighborhood? You may need to do your own research to find the answer. Dig up facts and figures about your own city or town and then combine that data with information about national trends to formulate your own conclusions.

Plenty of data are as close as your keyboard, though the process of sifting through it may take quite a lot of time and thoughtful analysis.  You can instead contact a good real estate agent and ask a few questions about the market.  There are a few other key facts to know:

1.  Local information and stats are the key.  Learn your area, not just Georgia or Atlanta, but your community.

2.  One of the single most important factors is the supply or inventory of homes on the market. If you are selling, found out about your competition.  How are they priced?  What do they offer?

3.  Remember in housing markets you will be using years of data and not just a few months.