I noticed that the newest answers to this question are still almost 1.5 years old now, and HMB hasn't gone bankrupt. The housing market here did take a huge hit in 2008-9, and even now seems to be very slow.
Its great being blocks from the ocean, and the value of that is not going away. Of course, placing a value on it is very subjective. In my neighborhood here in HMB, few houses are selling but this summer there is a lot of remodelling and upgrading going on. I think the people who live here who might otherwise have sold to upgrade are just improving their existing homes. If / when the economy improves, the prices may not come back to the pre-bust levels for many years, but it looks like further declines have stopped, at least for now.