I sell new homes in So. Cal - market has cooled off. Prices have come down a little, but they had gotten ridiculously high. This is a great time of year to be a buyer even in a "good" market.
Right now you can ask for lower prices, help with closing costs, etc. If you are buying a new home from a builder, ask for incentives - upgraded flooring, appliances, etc. You can probably get them to pay for all of your closing costs, and maybe a year of the association fees if its a condo. Don't be afraid to ask - all they can say is no!
Above all, look at it as a long term investment. Even if prices drop a little in the next year, all you have to do is wait for them to go back up before selling. Just make sure you get a mortgage with a rate fixed for a long enough time. Good luck!