SEATTLE - The housing market around Western Washington is starting to warm up again. Potential homebuyers, encouraged by stunningly low interest rates, are out looking for deals.

And on Sunday, often a big day for open houses, there were plenty of people out shopping for bargains.

Real estate professionals say if you've got the money, there's never been a better time to buy.

Real estate agent Karen Jurewicz showed potential buyers through a three-bedroom, 1 1/2-bathroom home in the North Admiral neighborhood of West Seattle. She's optimistic that the home - with stunning views of downtown Seattle - will sell fast.

It's only been on the market for a few days, listed at $550,000. Four years ago, it could have triggered a bidding war at $700,000. But these days, home buyers are expecting terrific deals.

"Pricing is just critical," says Jurewicz. "If you overprice your home, it's not going to sell. It'll just sit. And the longer it sits in the Seattle market, the less likely it is to sell."

More and more people are looking, encouraged by super-low interest rates. Thirty-year fixed mortgages can be snagged for as low as 4 percent.

And that's allowing some to consider even more expensive homes.

"The interest rates are so low, they can afford more house," says real estate agent Deborah Greer. "So they're looking at price points they haven't looked at before because they're monthly payments will be lower."

Despite the gloomy forecast for the U.S. financial and housing markets, a national economic tracking firm says Tacoma home prices should increase about 25 percent in the next two years - the highest increase in the country.

In Seattle, gains of roughly 10 percent are expected.

A big factor, according to analysts, is our area's strong, diverse economy.

But a lot is also riding on personal finances - and how comfortable people are making the big leap in trying times.

Those who study the housing market say loans are tougher to get than they used to be. But if buyers have steady income, solid credit and can put down a sizeable down payment - they should be in good shape.

"It's a gamble to wait. I think now's the time," says Greer.

Nevertheless, some lending companies are predicting that low rates will stick around through the 2012 elections.