Waterfront properties in Manasquan are still holding strong at the higher end, the older rental type properties have dropped some; Spring Lake is going for tax assessed value or a little lower.

To get a feel for the Manasquan market, you need to look at the year, not the quarter. Here's the data, this is for all single family homes, not just oceanfront listings from the Monmouth County MLS:
2007 82 homes sold at a median sales price of $603,500 and an average 108 days on market.
2008 66 homes sold at a median sales price of $540,000 and an average 119 days on market.
One could certainly make an arguement that the decline of the market escaleted during the last quarter when sales generally decline. However, on average in NJ, prices had been declining 1/2%/mo between January and August 2008. That pace doubled starting in September 2008 with the economic fallout to 1%/mo. These stats come from Jeffrey Otteau, Fortune 500 Appraiser and do not necessarily reflect the decline rate in Manasquan.
IF you want specific ocean front stats, reach out to me via Trulia or my website.

Dear Subhash,

Q4 of any year is traditionally the cyclical downswing of real estate; therefore, you wouldn't be doing yourself justice by focusing an evaluation solely during that time period.

On another note, by Oceanfront, are u referring to BEACHfront or actual waterfronts (i.e., Glimmerglass) where docks and boating capabilities are included in the sale of a home.

Whether it is beachfront or waterfront I often find that buyers consider multiple beach/waterfront towns @ the Jersey Shore, the waterway abilities, price and of course, condition of home in determining what they would like to pursue.

To indirectly answer your question, Manasquan house values, like most areas @ the Jersey Shore, have been negatively impacted by the changes real estate and today's economical conditions.

Honestly, you would need an indepth analysis in and around Manasquan to accurately assess your situatuion. I'd be happy to provide you with a personal, no obligation consultation at your convenience.

Sincerely,
Francesca Patrizio, Realtor Associate
732.606.2931