Michael Paganelli

If you've been holding off on a real estate purchase, glimmers of a turnaround in the housing market may have you wondering if it's finally time to make your move.

While home prices remain low, they're no longer free-falling in most markets. Mortgages are historically cheap. And the sweet tax credit that was offered to new buyers last year has been extended to April 30 and expanded to include current homeowners too.

But for all the motivation to act quickly, buying right now is not a no-brainer. In some areas home prices may fall further. If you own a house now, it may take longer than you expect to sell it, and you may walk away with less cash than you thought.

"It's a good time to buy, but it's still a really difficult market," says Patrick Newport of IHS Global Insight. As the clock ticks toward the tax-credit deadline, answer these questions to decide whether it's time to get off the sidelines.

Can you really nab that tax credit?

Current homeowners who sign a contract to buy a home on or before April 30 get a dollar-for-dollar reduction on their taxes of 10% of the purchase price of the home, up to a maximum of $6,500 (first-time buyers can get up to $8,000).

But according to the National Association of Realtors, buyers spend about 12 weeks home shopping before making an offer, so if you haven't already started looking, you may be pressed to meet the deadline.

Plus, to qualify for the full credit, your household income must be under $225,000 if you're married and less than $125,000 if you're single; repeat buyers must have lived in the home they are selling for five of the past eight years. The good news: Once you've signed the contract, you have until June 30 to close the deal.

How much could you lose by waiting?

Besides the loss of the tax credit, the biggest game-changer facing buyers is a potential jump in mortgage rates. If the Fed moves ahead with its plan to stop buying mortgage-backed securities at the end of March, the rate on a 30-year fixed mortgage is expected to increase nearly a percentage point from today's 5.18% to 6.1% by the end of 2010, according to the Mortgage Bankers Association. On a $300,000 fixed-rate mortgage, that's an extra $174 per month.

But if home values are falling in your area, you don't have much to lose by waiting. If the house you want costs $375,000 today and you put down 20%, you'd pay $1,644 a month for a fixed-rate mortgage at 5.18%. Buy that same home for 5% less later on with rates at 6% and you'd only pay an extra $65 a month. If prices plunge 10% or more this year (as they are expected to in 12% of markets, according to Fiserv), you'll come out even or ahead.

Visit www.owninsandiego.com for all of the latest listings in San Diego

Olivetto, a restaurant on the Mission Hills stretch of University Avenue that makes its first impression with a dressed-up but casual atmosphere. This is a neighborhood eatery with style, and the good looks aren’t reserved for the décor, since the kitchen takes care to present dishes in a way that makes guests want to dive in immediately.

An appealing freebie fills a basket with warm, appetizing slices of the house focaccia. This quickly made, freshly baked bread hides “focus,” the Latin word for hearth, inside its name. Meant to be eaten shortly after it leaves the oven, focaccia is very much a home-style loaf, and at Olivetto, the texture and fragrance are especially appealing. It’s frankly a pleasure to eat, either torn into tender mouthfuls or dipped into a saucer of green extra-virgin olive oil beaded with mellow balsamic vinegar.

Following any of these with the house cheesecake, an unusually rich version topped with a layer of sour cream, trickles of caramel sauce and a dusting of powdered sugar, turns a dinner out into a memorable occasion.

Olivetto Café & Wine Bar

860 W. Washington St.

(619) 220-8222

www.olivettosd.com