I had to look at where you live - Georgia... I guess you could have excess inventory there. Here in the OC, I doubt that will occur. Prices may make a correction (some have gotten rather ridiculous), but I don't think things will crash as some here are hope-a-hope-a-hoping!
On the other hand, I saw on another site that this market has the highest inventory of anywhere in the US. The new homes keep going up, including infill "McMansions" where a developer buys a 20-40 year old ranch on 1-2 acres of property, bulldozes it and puts up 3-6 cluster mansions. Typically these go for much higher prices, in the 600-800k range. Not sure how much longer that party is going to last ...