We are pleased to present our second annual Metropolitan Washington Residential Real Estate Market Report, which we hope will provide you with valuable information about the best real estate market in the country.

With profiles of the immediate Northern Virginia area, Loudoun and Prince William counties, Montgomery and Prince George's counties in Maryland and Washington, DC, our 2006 Market Report examines a market that was challenging for sellers. The year began with lots of "gloom and doom" predictions of a real estate bubble bursting and, as you will see in the report that follows, there was a significant decline in contract activity. Yet through it all, the market held up remarkably well, and we believe 2007 will be a significantly better year.