Here's an excellent guest post from Blogdowntown about the future of the condo/loft market in downtown Los Angeles. The author, Fred Cordova of Colliers International, states that there will be deals to be had there -- but not for another 12 to 24 months.
IMO, the market for downtown L.A. condos and lofts has always been naturally limited because downtown is so family-UNfriendly. But, then, maybe that's wrong. After all, being family-unfriendly has not hurt the real estate market or prices in NYC or San Francisco.