Even though it is not great for a lot of homesellers because a lot of homesellers are losing equity in their homes,this is great for buyers because you are going to be buying a home at a price lower than market value. Also,interest rates are still historically low. I hope this helps.
You may want to follow up with "Can we afford the monthly payments? Have we paid off other debts? Do we have a 15% down payment saved?"
From my vantage point, a home is a roof over your head, a street where your kids can play, and a community unto which you can serve. Yes, a home is an investment in that one day you should out-right own it completely (no more mortgage payments). Now that is financial freedom!
Trulia currently shows 606 single family homes in Washington DC. I've included a link below so you can review those homes and hope this information helps you.
Customer Service Representative