Wow, our situations are very similar. We moved from LB to the OC for the same reason. Only difference is we rented our place out. We decided to lease in HB. I think prices are still high and will drop. They are not going to skyrocket up so what do you have to lose by waiting? Give yourself a chance to learn the neighborhood before you commit.

 We just renewed our lease and our landlord dropped the rent by 5%. We'd be paying 600 more a month if we were to buy this place. Do the math and you might find it a much better deal to wait for a year until all those Alt-A's start to reset and the gov't interventions of low rates, homebuyer credit fades. You'll see prices drop more. Good luck.