This should help you decide if it is better to buy or sell now or wait until later

Spring is traditionally the most popular time of year to buy or sell a home. The week after Easter is traditionally the period when many homes are offered for sale and buyers are ready to write offers.

The past few years have seen tremendous increases in real estate values. Inevitably, the pace of growth started to slow and since fall of 2005 we have seen numerous articles in the press predicting that "the bubble is about to burst". The reality is that there is no bubble, a fact confirmed by many economists, but that story does not sell newspapers. Prices have mostly remained static and numbers of home sales reduced but there has been no evidence to support this hypothetical "bubble" theory.

But what of the future? What can we expect to see in the rest of 2006? I don't have a crystal ball but the following considerations appear to suggest that there is little point in delaying a sale or purchase:

1. The federal funds interest rate has just been increased for the 15^th time in a row. The indication is that this will continue to be an ongoing pattern for some time. While this indicates confidence in the economy, it also means an inevitable increase in mortgage rates, which are still very attractive. If you delay a home purchase, your mortgage will probably cost you a lot more in a few months time.

2. The Bay Area economy is strong and there are plenty of job opportunities in most areas. Silicon Valley and other parts of the South Bay are seeing boom times once more. What happens in the South Bay is often a precursor of what happens in the East Bay (many people commute to Silicon Valley from the East Bay). Jobs drive the real estate market.

3.  The median sale price in Contra Costa County in February was $540,000. This is the latest figure available and compares to $467,000 in February 2005. This looks like a pretty strong housing market to me.

There are a lot of homes for sale in Contra Costa County at the moment. You would think that buyers would have no difficulty in getting what they want, maybe even at lower than list price. The reality is that although there are a lot of homes for sale in general, there are quite a few areas where people want to live that are very short of homes for sale. West side Danville and Twin Creeks, San Ramon spring to mind as immediate examples.

As I say, I don't have a crystal ball but if I was planning to buy a home this year I would move sooner rather than later. The likelihood of increasing mortgage payments alone would convince me of that. �¡