The Washington Post has this on speculators. "Investors who sought quick profits buying and selling real estate in the Washington region are in full retreat, dampening demand for homes, most notably for condos. What is becoming apparent, market watchers say, is how big a part speculators played in the region's real estate boom of the past few years."

"They helped send prices soaring at unprecedented rates. And now many are trying to sell, or rent at a loss. Some may eventually dump properties at low prices to get rid of them. That could weigh down values for everyone."

"Sales of new condos fell 43 percent in the first quarter of the year, and there are almost four times as many existing condos for sale than last year. 'We think the softness of the market is largely due to the pulling out of investors,' said Gopal Ahluwalia, at the National Association of Home Builders. 'They have not only pulled back, they are canceling purchases.'"

"While condominiums were the product of choice for investors, luxury neighborhoods also fell prey to real estate speculation, leading to the prospect of price drops even in affluent subdivisions. 'Here we had it even in $1 million homes,' said Kenneth Wenhold."

"There are about 25,853 new condos being marketed locally now. But only about 1,996 new condos were sold from January to March, down from 3,520 in the first three months of last year. And the area's MLS, which lists mostly previously owned properties, showed about 5,500 condos and co-ops for sale in March in Washington and the close-in suburbs. That was about a fourfold increase from about 1,400 listed in March 2005."

"The situation has made home shoppers more wary about making purchases. Some buyers are even walking away from transactions. Lawyer Angana Shah almost bought a new one-bedroom apartment in Adams Morgan last month for $454,000, but as the settlement date approached, she found herself 'petrified' over the high price and worried that values would fall."

"She decided to walk away from the sale and got her money back. She was glad she did because prices have flattened and she can now afford a two-bedroom instead. 'I don't want a one-bedroom anymore,' she said. 'I want a two-bedroom. Now people are begging people to buy one-bedrooms. The market is better. I couldn't have bought a two-bedroom last fall and prices for one-bedrooms are falling.'"