In reply to:

but prices have to come down 15-20%

I am highly doubtful that prices will come down that much, but I totally agree. The market in the DC area has settled a great deal in the last 6 months. I had no competition for my townhome and got it for less than asking. Not much less, but that would have been impossible earlier in the year. Still, I paid about double what the previous owner bought the place for 2 years ago. And from the looks of it, she put absolutely zero work into improving it.