Housing is very expensive in southern California, but I doubt the market will "pop" rather than stop climbing so precipitously. More people still move there than move away and there is not enough buildable land (even accounting for the fact that Californians seem able to contruct on lots that are vertical, not horizontal).
There is still plenty of land in SoCal. The problem is with our roads. No new roads/freeways are being built, so commutes from cheaper areas are nearly unbearable.
I live in the WashDC/Baltimore area ( I appreciate your condolences)...the real estate market here is exploding but it really isn't irrational at all, it is very market driven.
I live in a townhouse in the suburbs...and people moving into the area can't afford the 400k single family homes, so they buy nice townhomes for 395k...the people buying the standard single family homes, are willing to pay that price due to supply and demand in the real estate market in this area....me I'm cashing in and moving to a low cost small town. It's a great opportunity for myself and my family to get a great standard of living and get out of the ratrace...several others where I work are doing the same thing, moving the Research Triangle in NC, York, Pa, Pittsburg, Pa, Charlotte, NC.