Well, like the old adage says, "they ain't making anymore oceanfront" so I'm sure it will always carry a premium. But personally I think we'll see prices start to level off or even drop across the board, and that will mean less people wanting to take a chance on "flipping" properties like this. A lot has been written about this, and it's disturbing to see how many homes are being bought solely as investments by people who are obviously clueless. Somebody will get left holding the bag on these before long.
And the recent hurricanes brought out something I wasn't aware of. The Federal flood insurance mentioned in that article tops out at $250,000. That could really burn people that max themselves out buying multimillion dollar shore homes in the event of a storm.
A home in the pines is really different from property "at the shore" in terms of the price it can command. However just look at things like that development in Whiting or the soon to be started one in Medford on Rt 70. The pines are already being threatened (as they have been all along, which was a main incentive in originally protecting them).
I have a friend who bought a home for $230,000 3 years ago in one of those seniors-only developments in Smithville. His neighbor just sold an identical one for $350,000. Now that boggles my mind....
