I moved into, and out of, the Washington, DC housing market several times over about a 20 year period. I've seen it stall, and plateau out before, and saw prices drop once - in late '90, early '91. But some of the prices being quoted in the WaPo article, in neighborhoods with which I am familiar, are actually unhinged from reality.
I believe significant price declines in the metro DC market are not only possible, but extremely likely going forward. Fortunately, I am not in that market at the moment. As for other markets, who knows?
anyone who bought a home during the last bubble in the early 90's was pretty happy ten years later. A bubble or short term price drop is only detrimental to those who can't hold the investment for at least five years.