Condo Sellers Banking on Extravagance

George Gates, a finance director at a not-for-profit organization, said curiosity drew him to the opening. He was entertained, he said, by the sight of people swooning over condos as if the economy were still soaring.

"It's just completely ironic that, at a time when we're not even sure if we have a viable economic model to even get a mortgage, they're peddling a shoe box for close to a million dollars," he said. "People say D.C. is recession proof. Congrats if they can pull it off."

In the lobby, Metropole's developer, Scott Pannick, betrayed no trepidation about unveiling his seven-story building -- condominium prices range from $400,000 to $2.3 million -- as political leaders invoke the Great Depression to describe the country's economic plight.

"I can't say I chose this moment," he said. "You put your building into production long before it opens."

But Pannick also said he is confident that Metropole will thrive because it's a quality product in a desirable location, 15th and P streets NW, a block that includes a Whole Foods Market and several sleek new buildings constructed during the economic boom.

Pannick said he has sold 52 of 91 units, although none has reached settlement. At least a dozen guests at the opening party expressed interest in returning for another look, which, along with the chatter, justifies the $18,000 event.

"They'll talk about the party, they'll talk about the units, they'll talk about the lobby -- good or bad -- but they'll talk and they'll come back," said Jennifer Felix, a Metropole sales agent. "Four years ago, you didn't have to do all this. People bought based on looking at a piece of paper."

The narrative is different these days. Real estate sales and prices have fallen in the District and most of the surrounding counties, although not nearly at the rate as in states like Nevada, California and Florida. The market is healthiest in neighborhoods in or close to the District, as well as around Metro stations. The weakest areas are far-out suburbs such as Loudoun and Prince William counties.

"Demand is still strong for nice property, and nice property still sells with multiple offers," said Charles Klein, a Re/Max Allegiance broker.

Overall, the number of newly built condo units across the region declined from 25,800 in 2006 to 12,000 now, mostly because of a glut that forced developers to cancel or turn projects into rental apartments, said William Rich, a vice president at Delta Associates, an Alexandria real estate research and consulting firm.

Condo prices have fallen slightly, 2.3 percent in the region and 1.6 percent in the District. "We're close to the bottom of the market, if we're not there already," Rich said.

At Metropole, the developer is not offering discounts, which did not appear to dampen enthusiasm at the opening party.

Norman Mauroner, 26, raved about the vista on display from the fourth-story duplex. From the bedroom window, he could see into a yoga studio, where he claimed attractive young women were changing their clothes.

"The perfect view!" he gushed, although not perfect enough for him to spend $853,000 to own it.