I'm just wondering why you picked now to move. Obviously, money isn't a huge deal as you mentioned you could live there comfortably, but it seems like waiting 3 to 6 months could make a huge difference in that market.
We left SoCal 4 years ago, so i'm familiar w/ the area. I spoke to friends last week who had all seen about $100K devaluations on their homes (Santa Barbara County, Northern LA County, Ventura County). These are $800K to $1.1M homes a year ago.
Everyone is assuming the market is really going to tank once the ARMs adjust in May/June. I know a lot of people out there that were financing their lifestyle by refi-ing every 18 to 24 months and pulling out $80-$100K in equity. Those days are over, lots of people are or will be upside down on their houses and they won't have the cash to pay their mortgages.
I'm hearing the IE is really showing its roots, lots of vacant houses and backyard mosquito swamps. Lots of people bought houses in Riverside county and San Bernardino county in those new developments and they just shouldn't have.
Anyway, just surprised you didn't wait it out a few months to a year and buy way more house for the same money or the same house for way less money than you did. It would also give you the flexibility to move quickly without losing money on a house. As it is now, if the market continues, you could lose money for the next year before the market starts back up. If you're in for 10 years, you'll be great.
Hope all is better and you're move works out. Do you plan on flying out of John Wayne? I hope you don't have to drive to LAX often.