Pretty sure you made this up , or read it as posted by someone else who made it up. My home is in a waterfront community. Homes on the water are increasing in price.

I am and have been a prospective buyer and have been basing shopping decisions on this already. So based on first hand information I have an existence proof that such buyers are out there already who are factoring this in today. And for the past 20 years in fact… when we bought our previous house we passed on certain locations based on this issue alone.

Now does that mean all buyers are factoring it in? Of course not. People are not used to long term thinking. And there are plenty of people who are in denial, and those people will make fine buyers for the short term. But at some point it’s likely the music will stop.

I made a slight edit of the original comment to clarify the point.

Price increase slopes can also change. The price can be going up, yet still be held back by something when it could have gone up even more.

And loans are still being underwritten for beachfront property.