Is the housing bubble bursting in San Diego? This article suggests it's starting, but I'm not too worried about this story.
For one thing, SoCal is very different from the rest of the country in this regard. Even if the bubble bursts in San Diego, that doesn't mean it'll have any effect on real estate markets nationwide; in fact, I'm saying it won't. San Francisco's real estate market suffered tremendous losses when the dotcom market went bust, as formerly rich silicon-valley types tried to unload everything they'd purchased with their imaginary money, including outrageously expensive places in SanFran. That didn't affect the rest of the country; neither will a long-overdue real estate market correction in Southern California.
Also, as Jim Kramer says, even if the housing bubble bursts, you can still sleep in your house; you can't do that with any of your other investments.
Any correction in the housing market, even a serious one, will be temporary. In the long run, property values will continue to grow. And with all those baby boomers on the verge of retirement, condos are a smart purchase no matter what fluctuations we see in individual housing markets.