[TheLion]

The real-estate market is tied into employment. The Northern Virginia is in the high end for new expected jobs.

I read today that in February 2005, there were 7800 houses that changed hands in Northern Virginia. That figure was 7000 in February 2006. Prices aren't going down here, but it is taking longer to move the property....depending on the location.

[bpjam]

Employment is ONE of the factors that affects real estate markets. And it is a different level of importance in each market. And the fact that houses are taking longer to sell but prices aren't going down is indicative that there was no bubble to burst. And also indicative that you do not have a high level of investor/speculator purchases in Northern Virginia (unlike the D.C. market, for instance). Real estate markets are like politics - its all local until you can create one big overwhelming trend that can nationalize it (ie, interest rates, stock market stagnation, capital gains tax reductions,etc).

But that you can sell your house at all and prices are noticeably higher than 5 years ago, you can give credit directly to Newt Gingrich for creating the capital gains tax exemption for homeowners. It freed up $1T in real estate and created the boom we saw this past decade.