As far as I am concerned, most people have no idea when to start preparing for the coming influx of buyers and sellers that will most surely affect us, the investor.  It's easy to sit and wait for the market turn to pass you up and then finally get onboard when the train has hit full steam.  But why not be ready to get on before it even leaves the station?

Of all the indicators out there that could show as a tell-tell sign of the economic recovery, the employment report would be your canary in the cave so to speak in letting you know where the market is headed.  Currently, the U.S. is losing thousands of jobs each month and the unemployment rate is still at 9.7%.  Until we see a real turn in this trend, we are not yet in recovery or growth.

Try visiting http://stats.bls.gov and see for yourself the latest news on the unemployment situation in the U.S.  This list is updated on the first Friday of every month.  You will be able to get the employment statistics for the previous months job decrease or increase.

Without work, there is less money that is stimulating the economy and if the companies are not hiring, you can rest assured that there is not enough demand to out-way the current production - hence, no need to hire more workers.  In fact, once you see a company shed jobs and there is an increase in revenue, this company will usually be streamlining production and become leaner and meaner well before it will start to grow.  It may be months or years before confidence levels will prompt a company to start hiring again, especially if profits are substantial with its current workforce.

Once we see more jobs, then we will see more consumer spending and this will lead to more real estate purchases.

There are also other indicators you should be watching such as retail sales, employment insurance claims, and even new and existing home sales - so use all of these indicators when you are trying to determine how the market is affected and whether you should be out there buying up the neighborhood or planning your exit strategy.