FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * William Blair Capital Management VII, LLC   2. Issuer Name and Ticker or Trading Symbol HouseValues, Inc. [SOLD] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director __X__ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) 303 W. MADISON, SUITE 2500 3. Date of Earliest Transaction (Month/Day/Year) 07/28/2006 (Street) CHICAGO, IL 60606 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) ___ Form filed by One Reporting Person _X_ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 07/28/2006 07/28/2006 J(1)   5,023,971 D $ 0 502,697 I By Ltd Partnership, See Footnote (2) (3) Common Stock 07/28/2006 07/28/2006 J(1)   502,697 A $ 0 502,697 I By Ltd Partnership, See Footnote (3) (4) Common Stock 07/28/2006 07/28/2006 J(1)   502,697 D $ 0 624 I By Ltd Partnership, See Footnote (3) (4) Common Stock 07/28/2006 07/28/2006 J(1)   624 A $ 0 624 D

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
William Blair Capital Management VII, LLC 303 W. MADISON, SUITE 2500 CHICAGO, IL 60606		X
William Blair Capital Management VII, LP 303 W. MADISON, SUITE 2500 CHICAGO, IL 60606		X
BLAIR WILLIAM CAPITAL PARTNERS VII QP LP 303 W. MADISON, SUITE 2500 CHICAGO, IL 60606		X
BLAIR WILLIAM CAPITAL PARTNERS VII LP 303 W. MADISON, SUITE 2500 CHICAGO, IL 60606		X

Signatures

Robert Blank, Managing Director of William Blair Capital Management VII, L.L.C.		07/31/2006
**Signature of Reporting Person		Date
Robert Blank, Managing Director of William Blair Capital Management VII, L.L.C., the general partner of William Blair Capital Management VII, L.P.		04/03/2006
**Signature of Reporting Person		Date
Robert Blank, Managing Director of William Blair Capital Management VII, L.L.C., the general partner of William Blair Capital Management VII, L.P., the general partner of William Blair Capital Partners VII, QP, L.P.		04/03/2006
**Signature of Reporting Person		Date
Robert Blank, Managing Director of William Blair Capital Management VII, L.L.C., the general partner of William Blair Capital Management VII, L.P., the general partner of William Blair Capital Partners VII, L.P.		04/03/2006
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Effective July 28, 2006, William Blair Capital Partners VII QP, L.P. distributed to its partners an aggregate 4,837,532 shares of the Common Stock of the Issuer, and William Blair Capital Partners VII, L.P. distributed to its partners an aggregate 186,439 shares of the Common Stock of the Issuer, in each case for no additional consideration. Of such amounts, 495,214 shares were distributed by William Blair Capital Partners VII QP, L.P. to its general partner, William Blair Capital Management VII, L.P., and 7,483 shares were distributed by William Blair Capital Partners VII, L.P. to its general partner, William Blair Capital Management VII, L.P. Effective July 28, 2006, the 502,697 shares of the Issuer received by William Blair Capital Management VII, L.P. were distributed to its partners for no additional consideration. Of such amount, 624 shares were received by William Blair Capital Management VII, L.L.C. from William Blair Capital Management VII, L.P.
(2)	The amounts shown in the first line of Table I represent the beneficial ownership of the Issuer's equity securities by William Blair Capital Partners VII QP, L.P. and William Blair Capital Partners VII, L.P., a portion of which may be deemed attributable to William Blair Capital Management VII, L.L.C. and William Blair Capital Management VII, L.P., because William Blair Capital Management VII, L.P. is the general partner of William Blair Capital Partners VII QP, L.P. and William Blair Capital Partners VII, L.P. and William Blair Capital Management VII, L.L.C. is the general partner of William Blair Capital Management VII, L.P.
(3)	The Designated Filer is executing this report on behalf of William Blair Capital Management VII, L.L.C., William Blair Capital Management VII, L.P., William Blair Capital Partners VII QP, L.P. and William Blair Capital Partners VII, L.P. (collectively, the 'Reporting Persons'), each of whom has authorized it to do so. Each of the Reporting Persons disclaims beneficial ownership of the reported securities, except to the extent of their pecuniary interest.
(4)	The amounts shown in the second and third line of Table I represent the beneficial ownership of the Issuer's equity securities by William Blair Capital Management VII, L.P., a portion of which may be deemed attributable to William Blair Capital Management VII, L.L.C., because William Blair Capital Management VII, L.L.C. is the general partner of William Blair Capital Management VII, L.P.

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