Bubble in Washington, DC?

[Andy Gross]

I've been monitoring prices in Washington, DC, and I am seeing some really rapid appreciation in the last 2 years. A friend of mine has been getting outbid at every turn. Is this flight capital from other countries, or are prices just making up for losses from the 2007-2011 downturn? Last year saw something like a 5% increase in sales prices, and volume has gone up dramatically.

Is this market getting overheated?