e Northwest region rose 22 percent. In Northern Virginia,
just miles away from the site of the terrorist attack on the Pentagon, new homes are blossoming as fast as spring flowers, if not faster. The average price of a new
home is over a quarter of a million dollars. It appears as if consumers are purchasing the homes even before they are built. The strength of the residential property market relies on a number of factors including, mortgage
interest rates, unemployment rate, consumer tastes and preferences and income among other things. Weaknesses
The same factors that have been the cause for the boom in the real estate industry recently, may also be the source of its downfall. Despite robust growth in the past 5 years and an even greater spike in the recent 12 months
there are signs that the residential real estate industry is experiencing a decline in growth. The Windmere Index, an index which tracks the residential real estate activity in Puget Sound reported that activity declined at a rate of 0.9 percent in January and February of this year. Parts of the country are beginning to w
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