All Clear on Home Front

Gotta love the month of May.

The kids are outside again, the nervous brides finally get their grooms down the aisle and the "For Sale" signs pop up on lawns all over town.

But with the constant threat of rising interest rates, a drop in mortgage applications and a pretty flat stock market, is this the right time to buy a home? Or sell one, for that matter? Would we all be better off just enjoying the summer and waiting until things settle down in a few months?

Well, despite all the hype of the "housing bubble" bursting, the situation isn't that bad now. While some areas of the country have seen home prices decline -- such as the overheated markets of California and Florida -- nationally, home-price appreciation hasn't slowed, and it's not expected to decline, according to Zoltan Pozsar, an economist at Economy.com. Prices might flatten on the national level, but you shouldn't see too many big dips.

The National Association of Realtors is predicting that 2006 will be the third-best year in the history of real estate. That's pretty good, considering that the last two years held the No. 1 and 2 slots.

Be the Buyer

After a few manic years, it's a good time to be a buyer. "With certain markets cooling and inventories building, you don't have to rush into the marketplace," says Thomas Stevens, president of the National Association of Realtors in Washington, D.C.

You can actually take your time during your decision process. Get the home inspected first. Call in a contractor. Make sure you're thoroughly comfortable with your purchase. Anyone who bought a home over the last two years can recount stories of bidding wars on homes that were money pits. No more. Now you can make much more educated decisions.

To watch Tracy Byrnes' video take of this column, click here.