I don't know the LA market, but you always need to remember that current cash flow is king and the potential of future price increases is queen (unless your bank roll is really fat). 

Another factor is that the new investors are over saturating the market and causing there to be too much inventory, having to make all the bigger guys drop their price (which most don't mind doing because they rather sell quicker and move on).

The margins look fat, but you really do have to treat it as a business and get all of your processes in place. 

Maintain a vegan diet two days per week and drop my body fat below 10%.3.

And this state, city and county are ALL still woefully under water with their obligations (i.e. pensions).For far too long, these stupid politicians have simply over promised the fat cat unions more money than what the state can afford to pay. 

Fine leather shoes and the biggest indicator of all ....a big fat billfold in their back pocket !

In what ways can you protect yourself from an over-saturated market?

How do you go about addressing this question of market-saturation for yourself? 

I think Photoshop is overkill for most people, including me.Shooting in RAW means that every image needs increased sharpness, a slight bump up in contrast and saturation. 

how do i know if a market is saturated ?