Step 1: Identify powerful leading indicators

The big three; building permits, housing starts, and new homes sales are the most reliable for predicting housing market health in the U.S. released once every month respectively, the data associated with the indicators can be freely downloaded from the Internet. 

Once housing-related indicators start to trend one way over an extended period, house prices stall and then reverse in the opposite direction. Once housing-related indicators start to trend one way over an extended period, house prices stall and then reverse in the opposite direction.