In Ocean Properties We Trust?

I just returned from a week long vacation in the South New Jersey shore area with good news: the rental market is fairly strong with prices holding steady. As for sales, that's a different matter. In one town that we frequent, Ocean City, there didn't seem to be any type of huge inventory of properties for sale which means current owners are either in good financial shape or that summer rents are still helping pay the mortgages. Listing prices are definitely down compared to the peak of the market. If you're looking for a two-bedroom condo within two blocks of the beach prices are still north of $400,000 which seems pricey to me but I'm old school. But one thing to keep in mind: the East Coast ‘ocean market' is all about cash flow: in certain areas the owners use the unit one or two weeks of the year and then try to cover the mortgage payment through rental income. So far, there has been no huge crash in home prices which means if you're near the water you're okay. But if you're a mile from the ocean, it's a different matter entirely, Just look at Florida…