Although the realtors on this site will attack me for the following comment, this would be a terrible time to buy in the 90802 zip code, unless you must buy now (because of a 1031 exchange, for example). Inventory has increased, sales transaction volume has slowed dramatically, and notices of defaults and foreclosures are increasing substantially. All of these things will put downward pressure on pricing for years to come.
The reality is that prices will most certainly be lower next year, likely lower in 2009 and possibly even lower in 2010. Real estate cycles take many years to play out and we are at the very beginning of a down cycle. I disagree with Karoline who says that it does not matter what price you pay if you are looking to hold on for the property for 5 to 10 to 15 years. Let's say you buy now for $500,000 and prices drop 20% (actually, Forbes in a recent article estimated a 26% anticipated decrease from June '07 prices by 2010 for Los Angeles county) over the next couple of years. You would have lost $100K in future equity by having not waited. Additionally, you would be paying property taxes and interest on the $100K.
Best of luck, and if you want an objective opinion, don't waste your time listening to cheerleading realtors, who are often overly optimistic about the real estate market.
A lot has happened since November, 2007. If you are still looking for investment property, income property, or second residence, let me know. It is a buyers and investors market out there, including in 90802.
Charita King - 562-276-8681