Is real estate truly a good investment in the Seattle area?

At Pillar Northwest we broker bank owned homes and have for over 15 years.  Over the past years the real estate has taken a beating on many fronts.  It has been a scapegoat for most of the economic woes.  Recently I found this article taking a snapshot look at the last 10 years. As it turns out, the average price is still higher than it was just 10 years ago.  I was just reviewing one of our bank owned properties with a client who was going to use it for a rental.  With 10% down payment the principle, interest, tax and insurance payment was under $600/month.  The down payment was only $8,000 and the cash flow was $200 per month or $2400/year.  This is a return on the downpayment of 30%!! Not to mention that applying the $200/month cash flow to the outstanding principle balance would pay off the property in 15 years...  Here is the article I was referring to!  -Scott Germino   http://seattletimes.nwsource.com/flatpages/businesstechnology/realannual05chart.html