Below is a post regarding the increasing inventory of homes in the Orange County Market. As this market continues to evolve I predict another drop in housing prices during the winter of this year and early next year. The time to buy, in my opinion is not now, not while inventory is rising. Hold off for 6 to 8 months, heck in 12 months prices might still be lower than they are right now. Unless you are upside-down on your mortgage, now is not a good time to sell. Best to rent it out wait 5 to 7 years and make some money rather than lose your shirt. Find a good Orange County Property Management Company and be patient.

http://lansner.ocregister.com/2010/06/28/43-more-want-to-sell-o-c-home/70833/

With inventory clearly rising a good prediction would be a price drop, but most likely more apparent on the homes above the $600,000 -$700,000 range.