If you were waiting for the bottom of the market, this is it.

After five years of declining sales (2005-2010) the pace of single family home sales finally increased in 2011.

After five years of declining sales prices (2006-2011) the median price of single family homes (sold) finally increased in 2012.

At this point, I'm not expecting either of those to start declining again over the next few years (even if they don't increase exponentially either) -- so, if you were waiting for the bottom of the market, this is (or was) it.

Buyers -- act early in 2013 before prices continue to increase through 2013.

Sellers -- be realistic about pricing, to best present your house to potential buyers.

I'm expecting to see further recovery in both pace of sales and price of sales during 2013.