2. Rents are among the highest in the nation and Washington is one of the few cities in the country where it is cheaper to buy. Therefore, those who can do do are getting into the housing market -- and improving their monthly cash flow both because their mortgage payment it lower then their rent was and because of the tax deduction they now enjoy.
3. Access to low downpayment loans such as FHA is fueling the market below $729,500.
4. People want an urban lifestyle where they can spend less time in their cars and more time living their dream.