Well there's an awful lot of people on here who do believe magic works (most, I'd say, it IS a magic-based site :P), but from a skeptic who didn't for a long time, yes, magic is real. Here's my explanation to myself for my own belief, which I typed out to a friend earlier but works just as well here:
I have two main scientific breakthroughs that I use to justify my belief in magic. The first is from quantum physics: A particle is only a particle if it's being observed: otherwise it behaves as a wave (you can look up the double slit experiment on wiki)... to me, this means that somehow, in some fundamental way, conscious observance of matter changes its physical form; and gives me a reason to believe that consciousness can affect the physical reality.
Another is the work of Dr Masaru Emoto who has run many experiments on water, and seems to have proved that the way water is treated affects it's molecular structure: blessed tap water has a distinctly more beautiful, snowflake structure compared to ordinary tap water... so that makes me believe that blessing and intent also has a real, tangible affect on the physical world grin emoticon
So whether or not this works for you is your own choice, this is simply my own belief and there are many others well worth exploring so that you can find the right one for you.