"I won't say there aren't some distressed situations. But the majority of property owners have the wherewithal to hang on," he said.

Joseph Elliott, Ocean City's tax assessor, said the board's numbers match his records for sales. But he prefers the term "stabilizing" to "rebounding."

That means the island's homes are not losing value like they were in the past few years. But they might not be gaining it yet, either.

"It's a wonderful position to be in," Mount Laurel investor and financial planner Vincent Brigandi Jr. said.

After studying Ocean City's market for nearly three years, he bought a single-family home off Peck's Bay in May, hoping to catch the last of the receding market.

"I will not tell you I'm smart enough to say I got in at the bottom. But I'm comfortable enough to say I'm within 10 percent of the bottom," he said.

With a buyer's market, Brigandi and other investors had more choices and more leverage. He did not feel the same competitive pressure that buyers felt in 2004, when the island's market was climbing at 3 percent per month. Still, some of his friends were skeptical.

"I did have some friends tell me that I was crazy," he said.

Now those same friends have commandeered his bayside home for a New Year's Eve party.

Just how bad did the market get in Ocean City?

"The people who bought in 2005 at the top of the market are the ones who got hit most," agent Nicholas Marotta said. "We've been to settlements where sellers had to bring money to the table to the tune of $100,000 - just to get out from under. They couldn't get anywhere near that number."

But Marotta said he thinks the market is showing signs of life.

"I think we've hit a bottom. The prices that are being adjusted right now are basically just to get a property sold. It's still overpriced somewhat," he said. "We're better than any resort market by far."

And investors are taking note. Upper Township resident Louis Paone and his wife, Dawn, bought an 8th Street condo in September - their first investment property. Like other investors on the island, Paone is very familiar with the resort. He works as a math teacher at the Upper Township Middle School.

But signing a deed was a nerve-wracking decision.

"It's tough. You just wonder, did the market bottom out?" he said. "You always second-guess yourself. We prayed about it and felt that it was the right decision."

Paone said he and his wife look toward the horizon, not a short-term flip. And the stock market does not offer any more reassurance.

"Retirement accounts are taking a beating. Where do you put your money? If you're investing long-term, the real estate market has the best results, not the sudden fluctuations."

They picked Ocean City for a reason, he said.

"Ocean City seems recession-proof. People keep coming down to the shore regardless of the economy," he said. "The Chamber of Commerce and the merchants do a good job marketing the events and the city. You can't always judge Ocean City as a microcosm of the economy."

Langhorne, Pa., resident Wendy Carpani and her husband, Dominic, sold a home here in 2003 but waited five years to reinvest in the island. Finally, in May, she bought a tear-down on the 5700 block of Asbury Avenue within strolling distance of Corsons Inlet State Park.

Carpani said she would love to see the double-digit increases in value the island witnessed five years ago. But she is prepared for a long, happy relationship with her shore investment.

"We're in there for the long term," she said. "I get relaxed when my feet hit that sand. We're at a point in our lives when we just want to enjoy it."

E-mail Michael Miller:

MMiller@pressofac.com