Be patient, this summer is not the time to buy. It is still difficult to make offers at historic prices because they are considered lowball. By August more REOs and the ARM resets will make it clear to people that things aren't going to get better anytime soon. When Wkly Rent = Mortgage we will be back to normal prices (econ 101).
"It hasn't been that way for 10 years (rent=mortg)"
Ever hear of the greatest RE Bubble in history?
"They aren't making anymore shore property"
They did BEFORE the bubble?
"We have water" (my personal favorite)
"Southern CA and FL? (not to mention Detroit) LOL
Here is a link to why we will see the price drops: