Just think of it.
A three-bedroom house. An open floor plan, spacious home with large bay windows that look out into some of the most beautiful waterfront scenes that you could envision.
For decades, a property in the coastal community has been a large part of the American dream. After all, who wouldn’t want to live in a place with beautiful ocean scenes and the beach in their backyard?
But as it turns out, there are some worrying trends in the coastal community real estate market that you should know. In this article, we’re going to take a look at how some of the current world trends are affecting real estate listings for ocean view residences. Keep reading to learn more.
Fears of Climate Change
For a few years now, fears of climate change have been taking the world by storm. There is no doubting the fact that the world is slowly becoming warmer. One consequence of the world becoming warmer is that the enormous icebergs in the Arctic are beginning to melt.
And as they continue to melt, one unavoidable consequence is rising ocean levels across the world.
What does this mean for beach house sales?
Well, no one wants to invest in a property that could be underwater in a few decades from now! So just imagine the impact on beach house sales.
The flipside to this, however, is that these fears could be unwarranted. There’s a good chance that the world could get its man-made climate change effects under control, which will in turn reduce the flooding that coastal communities would experience.
That would make this temporary season of lower beach home prices to be the ideal place for you to buy your own little part of a beach town.
Waterfront Premiums Still Exist
Waterfront premiums, however, definitely still exist. If you want an ocean view, you’re going to pay more for it. The research was done on the real estate market to estimate exactly how much of a premium you’re paying for a property with ocean views.
The result? 36%. That’s a full third tacked on to the asking price of a home.
While the fears of flooding certainly do exist, they are not yet severe enough to scare away all the buyers out of the market. The demand for waterfront homes is still very high, and you can expect prices for such a home to remain above the price for a similar home in a landlocked region.
Coastal Community Real Estate Trends You Should Know
There you have it. Now that you know these coastal community real estate trends, you should have a far better handle on the general real estate market. It’s now up to you to make a choice where the balance of assuming flooding risk and taking advantage of currently-low prices lies for you.
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