I have only noticed the smell once or twice and I live right on the water. There is some garbage on the beach but I would not say it is bad.
As for houses for sale, I drove around a little bit yesterday and saw a lot of signs. However, most of the houses in the low end are priced about $200,000 more than last year. I went into a tiny 2/1 with a small patio yard and 1 car garage that was priced at 1.2M. It would have been priced at about $800,000 – $900,000 last year. I see a lot of houses that are priced way above comps. People are reaching for the moon. I have even seen some houses and lots that are priced DOUBLE what they should be priced.