In my opinion and from everything that I have read from reliable sources, the market is returning to "normal." What is normal? It's about 4% appreciation per year. There will not be another bubble any time soon, and the reason I say this is because of the lending restrictions implemented by the Fed in January of this year. These were purposely put in place to prevent another bubble.
The market got out of hand in the early 2000's because money was too easy to borrow. That created a lot of demand which drove up prices. Then prices got so high that even a married couple, both persons working full time, could barely qualify for an interest only loan, which resulted in a lot of inventory, but no buyers. Too much supply and too little demand equals lower prices.
With the new lending restrictions, lenders have to personally guarantee the loans they make (called Qualified Mortgages) so they are being much more cautious (I am not a lender, so I don't know the exact wording for this).
In San Diego, particularly areas like Carlsbad where I concentrate my business, there is still a lot of demand and little inventory (which normally drives up prices), but with the lending restrictions, prices have been relatively stable.
In summary, now is the rare time where it is good to buy OR sell. By selling now, you can know that you're not going to miss out on a lot more $ had you waited a year and if you buy now, you can know that you won't be upside down next year.
I hope this helps!