Judy Jarvis Ellis, president of the Silicon Valley Association of Realtors and a Realtor with Alain Pinel Realtors in Palo Alto, said the current climate mirrors the months after Sept. 11, when no one could move forward.

"The real estate market stalled the entire fourth quarter of 2001, and then, with the impetus of the New Year, buyers leapt into the market. Prices soared, and multiple offers proliferated," said Ellis. "Consequently, from a buyer's perspective, if now is the time for you to buy, do it."

Recent reports show sales of existing homes hitting new records in January 2003, with home prices continuing to show strong gains on top of a robust ending for home sale prices in the fourth quarter of 2002.

"The median price of a home has increased by double digits for the last 14 months and shows no signs of abatement as we approach the traditional spring selling season," said California Association of Realtors President Toby Bradley.

At the national level, sales of existing single-family homes rose to a new monthly record in January, according to the National Association of Realtors. David Lereah, the association's chief economist, said the momentum of sales is huge. "We've just finished a record year for home sales, but mortgage interest rates dropped to a new low in January. Given the demands of a growing population, and with real estate becoming the safe haven for investment, many factors are in place for a continuation of strong home sales," he said.

A recent poll from RIS Media, a leading independent provider of news and information in the real estate and relocation industry, reported that 83 percent of the Realtor respondents said the threat of war would affect the real estate market and 17 percent said it would not.

"I think people are waiting to see what happens. If they start the war for real, then I think it will be easier for people to make decisions," said Realtor Sue Vaterlaus of RE/MAX Dolphin Real Estate. "There will always be people whose families grow and need to move up and people who divorce who need to move down. Interest rates will probably also have a huge effect on what people do."

Low interest rates are traditionally a boon to the housing market. Thirty-year fixed mortgage interest rates averaged 5.92 percent during January, and adjustable mortgage interest rates averaged 3.99 percent in January 2003, the lowest rates in several decades.

Contrasting the incentive to buy due to low interest rates with a 15-point drop in consumer confidence is one of the reasons why no one can make predictions with any certainty. According to Lynn Franco, director of the Conference Board's Consumer Confidence Index, the drop is due in part to lackluster job and financial markets, rising fuel costs, and the threat of war and terrorism.

Realtor Dale Klippel of Prudential California thinks the potential war is making buyers take a wait and see approach before they take the step to actually have an offer written on their behalf.

"We are still seeing many buyers out shopping and some actually purchasing. They are still going out every weekend to see the new listings but are not pushing themselves to get that offer written," said Klippel. "If we do get into a war, I think almost all buyers will step back and see what's coming next."

Klippel said many people are questioning whether we will have retaliation within our country from the Middle East or North Korea. "If so, the housing market could well dry up for a number of months. Sellers and buyers alike will most likely stop in their tracks and place their entire focus on the war and happenings within our country. We all might be concerning ourselves with how we can assist our families and community against the enemy," Klippel said.

In spite of the uncertainty, Realtor David Zigal is currently seeing strong activity in the marketplace, with multiple-offer scenarios. He recently participated in a situation involving 10 offers where his client's offer came right in the middle with five that were higher. "As you can see, the war, or signs of war, do not seem to slow buyers from getting properties in our area," Zigal said.

The bottom line for Realtor Jeanne Garde is that a slowdown might occur when the actual battle starts and everyone watches to see what happens.

"If the early reports are positive and interest rates remain low, the Bay Area market will be right back where it is today, and that is the normal winter-into-spring growth," said Garde. "Should things not go well, or there is a West Coast terrorist activity, then the market will slow quickly until the above conditions are met."

A key factor in the nation's economic recovery is whether the war will be over quickly or will drag on for some time. If the war lasts for a long time, it could spur higher oil prices and higher interest rates that could impact home sales. At this point, trying to predict what will happen with a war that hasn't yet begun is pure speculation. A Realtor with the knowledge of the local market can help determine whether it is the right time to buy or sell.