Columnist Catherine Hockmuth of The Voice of San Diego discusses the current "buyers market".
Catherine also wrote a great piece on renting recently.
I highly recommend both of these articles.
I'll add to her comments that you need to negotiate well and get a good deal for yourself if you're buying in this market. You could easily find yourself $100,000 underwater if you don't do your homework. Her idea of factoring in 5% growth since 2001, a reasonable growth rate of a normal, non-bubble market is a good way of looking at the market. I've actually used the same exact methodology in some of my analysis work. Perhaps I'll add a "5% annual growth rate since 2001" statistic to my posts.
Thanks to Mark for pointing out this article in the comments of a prior post!