Second-order time correlations of polaritons have been measured across the condensation threshold in a CdTe microcavity. The onset of Bose-Einstein condensation is marked by the disappearance of photon bunching, demonstrating the transition from a thermal-like state to a coherent state. Coherence is, however, degraded with increasing polariton density, most probably as a result of self-interaction within the condensate and scatterings with noncondensed excitons and polaritons. Such behavior clearly differentiates polariton Bose condensation from photon lasing.