One will see depreciation in DC as well, if not already.
Your friend probably did not bargin hard or know the market better. If he lost money right after he bought the house, then he can only blame the seller for ripping him off.
Also spreading out and out is not uncommon. DC is spreading out, isnt it? NJ is spreading out. Boston is spreading out, NYC is spreading out to connetict, SF is spreading out to Sacramento. Spreading out does not reduce the core value in the inner city.
Atlanta isnt DC. I believe a city that does not have ups and downs of RE in dramatic fashion provides a stable investment environment. You can believe otherwise. But I just happen to think we should not lead other people in one way or the other based on our own limited knowledge, me include.