Realtor John King of Alhouse-King Realty in Palo Alto named some top reasons why the holidays are shaping up as a good time to sell.

"Fewer homes are on the market to compete with your home. Buyers looking during the holidays are serious. Homes look great all decorated for the holidays. Many companies will hire in the beginning of the new year so transferees are looking during the holidays, and, finally, lenders have available money to lend for closing during the first month of the new year," said King.

Ryan Iwanaga, manager of Coldwell Banker's Los Gatos office, said it is one of the great myths of real estate that homes don't sell during the holidays and that it's best to hold off until after the new year to list your property. "For a number of reasons, the holiday season can be a surprisingly active time for home sales. That is likely to be particularly true this year with interest rates holding at a 40-year low and still hovering below 6 percent for a 30-year fixed-rate mortgage loan," said Iwanaga.

One of the reasons why Iwanaga finds the market to be surprisingly strong at the end of the year is that there is a considerable demand from serious buyers. During the rest of the year, certain people look for homes with no intention of buying.

"They just want to see what's out there and perhaps get some decorating ideas for their own home," said Iwanaga. "The people who trek from home to home this time of year are serious about buying. These winter buyers often have to buy a home due to a corporate relocation or other reason beyond their control."

Another reason houses sell quickly during the holiday season is the heightened emotional connection homebuyers feel for a home, said Iwanaga. "Tastefully decorated, a home feels even warmer and more inviting this time of year. There's a different aroma and a different feel to homes over the holidays. Gingerbread in the oven, a fire in the fireplace and extra outside lights are all appealing elements of marketing a home. Prospective buyers make a connection by envisioning themselves at happy gatherings in their new home."

Iwanaga finds that homes can also be more visible during the winter months. "Most people take special pains to make their homes attractive and tidy for company during the holidays. Generally, if a house shows well during the winter, which is typically the worst season for outdoor foliage, buyers have confidence it will shine even more in the summer," he said.

While the market may be slightly slower during the holiday season, Realtor Susan Sweeley of Alain Pinel Realtors in Los Altos thinks the holiday season is a great time to buy because fewer people are looking and there is less competition.

"If sellers have their house on the market, they are definitely motivated and more willing to negotiate and work with the buyer," said Sweeley. "Also, since there are fewer homes on the market during the holiday season, it could be a good time to sell because there is less competition. Bottom line: It's an efficient market. It's a good time for both buyers and sellers since both are generally more serious and motivated."

Realtor Myrt Bauer, managing broker of Windermere Silicon Valley Properties in Mountain View, agrees that there is less competition with other homes for sale, which may help the seller.

"We are seeing the market still strong and buyers making their final move before the end of the year. Sellers' homes are usually decorated and look their best during the holidays. Many companies have their employees transferring the first of the year, and we do have activity for transferees during the holidays," said Bauer.

According to M.J. Miller, a senior loan officer with First Horizon Home Loans in Menlo Park, buying a home before the end of the year might have some tax advantages.

"It may be a little late now for someone to close escrow before the end of the year if they are not already in escrow yet. If they are in escrow, there is the consideration of getting the tax deduction for the nonrecurring closing costs in 2002 instead of 2003," said Miller.

For Realtor Patti Mauseth and her partner, Ken Roberts, of Alain Pinel Realtors in Los Gatos, the holiday season is a fantastic time to purchase.

"People are so busy with the holidays and experiencing the related financial burdens that they oftentimes abandon their home search until January or February. It is a simple supply and demand issue. The supply remains fairly stable and the demand decreases dramatically," said Mauseth. "Conversely, in the early winter the supply may rise slowly, but the demand is great. This creates an increase in prices. If you are on the fence, leap off and take advantage of this short window of opportunity."

So, while making that list and checking it twice, don't rule out homeownership as a possibility this holiday season.