I just saw a couple of headlines this week that would shiver the timbers of most real estate markets: "Home Sales Plunge" and "Navigating the Foreclosure Mess." These headlines just don't give buyers or sellers a confidence boost. But as I always say -- or someone said -- the Devil is in the details. That's no more true than in the world of real estate.

In the Washington, D.C. area, and other metropolitan areas around the country, there are signs that the bottom has been reached, and, actually, that it was hit several months ago. The zip code market leading the way in our area is in Northwest D.C. (20015). In this particular submarket, the October prices were up 4 percent over October last year -- and this is the eighth consecutive month the sellers there have seen a price improvement year-over-year.

This is not an isolated incident in the metro area. Several zip code markets have already turned around or are in the process of rising above the red line and heading into the green zone on prices. Many of you should be able to do this type of research in your local area. Realtor associations usually carry sales information on their websites (see Realtor.com for a list of local associations).

So how do you determine if you've hit the bottom? I look at six categories and watch them over several months.

What I'm looking for to see how the market's is headed falls into those six categories:

• Average Price
  
• Median Price
  
• Days on Market
  
• Total Dollar Volume
  
• Units Sold
  
• Absorption Rate

In the 20015 zip, for instance, here's what I've seen:

Just last month both average and median prices were up (4.36 and 6.01 percent respectively); total units were up 70 percent; days on market were down 13.73 percent; and the absorption rate was 2.3 months (surrounded by absorption rates up to 9 months). These have all the ear-markings of a sellers market. The challenge here, however, is that it is surrounded by markets that are still in either a fluctuating market or a buyers market.

What we have found in the D.C. market is that recoveries begin at the center of the job market - obviously, here it is Capitol Hill. This zip code is a stone's throw from the White House -- the Epicenter of the real estate market (which would be the ultimate listing!).

Interestingly, once the average and median price hit bottom, all the other numbers head into the right direction. (Sellers take note.) The only areas a market watcher wants to see dropping are the Days on Market and the Absorption Rate.

The Absorption Rate, however, tells the underlying condition of the market -- is it a sellers, buyers or equitable market? To arrive at this number, divide the active listings by the number of contracts registered in the last 30 days. If it's at 4 to 7, it's generally an equitable market. Below this level is a sellers market, and buyers markets are in the 8+ months supply. What the Absorption Rate means is that if no more listings came on the market, it would take that many months at the current contract rate to absorb the inventory.

Have we hit the bottom - it depends, is the answer. But for the D.C. market -- buyers should get off the fence and start writing realistic offers in preparation of the coming escalation. Inventory has begun to slip, prices in the closer in areas are now moving upward and interest rates are once again, down. Buyers have opportunity staring them in the face; be sure not to blink.