Real. Growing up we always had a real tree and I've continued that tradition with my own family. I think only once DH and I had a small tabletop fake tree, back in 1998. He ended up putting my engagement ring on the top of that little fake tree as the star, so good thing we didn't have a taller tree!
DH thinks I'm nuts for spending so much every year on a real tree, but I don't care. The first Christmas in our new house I bought the 10-12 foot tree, which was over $100. Every year since, I have settled for the 8-9 foot tree which is less. I think the extra couple of feet with the 10-12 was an extra $50-60!!
I can't imagine having a fake tree. I'm a little nervous about getting our tree this year since it'll be our first christmas with our Boston pups...they'll be almost 11 months old by Christmas. I'm afraid they will destroy the tree since they destroyed every potted plant I had on my patio!! We get our tree the day after Thanksgiving, so I guess I'll find out in a few weeks!