First, the statistic is probably wrong and certainly misleading. Prices around DC in the past year have varied from about steady to as much as 30% off. Second, buyers are coming back as interest rates dropped since the summer. Offers are coming in at or close to asking prices where the asking prices are realistic (reflecting the declines I mentioned). Third, anybody who is waiting around thinking they will get some bargain real estate at giveaway prices should move to rural North Dakota because that's where the bargains are right now.
Even in this area (No. VA), desirable properties are not coming on the market at any price. I was lucky to pick up a riverfront property at about 20% off the peak price because the owners are doom and gloomers or need the money. I don't expect it go up, I'm ready for it to drop some more, but the important thing is that I got it.
Looking for a waterfront property for later years. The prices became so outrageous we decided to wait. Maryland is bad but NJ is worse. $15,000 taxes per year on a retirement home is nuts. That figure will probably go up.