First of all I would suggest you to get detailed market analyses as well as comps for your current condo. If you see that your condo could be sold pretty fast for a dollar amount that would help you achieve your goals, I would sell it. However I would also suggest you to talk to your CPA about different options and tax consequences. It also depends on your credit situation, which can have a big impact on what kind of loan can you get for your new purchase.
At this point I see a lot of multiple offers on homes that are priced well, which will affect your sale on one hand and your purchase on the other hand. However, the real estate is local and it depends where your current property is and where your future home is.
FYI: Based on a recent real estate forecast by California Association of Realtors, prices in Los Angeles County will get stabilized around Spring 2009.
Call me if you want to get free, no obligation analyses for your condo as well as for those few homes that you are currently considering to purchase.