With energy prices at an all time high, consumer goods will eventually follow as it takes energy to produce and get them to market. The buyers will have less money to spend on RE. That alone is a sign that the market will soften.
Many waterfront properties bought in the past few years were sold in a short period of time. As an example, my Dad sold his broadview site in 1997. It was 'flip' twice since then. It was sold last summer for almost 4 times the price my Dad got for it. I met a woman at Patrick's Saturday night who was thinking of 'flipping' a Moultonborough property she had for only one summer. She is worried about the market going South. She mention another couple on Long Island that felt the same way.
My feeling is that lakefront property is inflated due to speculation. Once that aspect goes away, I can see a reasonable drop in prices.
