Q&A with Carlos Mandiola and how will an interest rate increase impact the luxury market | Key Biscayne

This week, Islander News had a chance to chat with longtime island Real Estate professional Carlos Mandiola, from the McCaughan and Mandiola Real Estate Team, and Coldwell Banker who offered the following perspective on how market conditions are impacting the luxury sector of Key Biscayne and other cities in South Florida.

IN. How many years working as a McCaughan and Mandiola team? What is the best part of working together, and what’s the aspect you enjoy the most?

CM. We have been working together for 20 years. The best parts of working together are the strong work ethics and integrity we all share. We update each other on what is going on in the market and often help each other out with any issues.

IN. How do you perceive the market today in the luxury real estate sector of South Florida?

CM. The pandemic created a “feeding frenzy” in the real estate market for quite a while. It is still strong but not as frantic as previous years. South Florida is still the place to be worldwide.

IN. What is one piece of advice you can give to someone trying to sell a high-end property in Miami for a very high price? Keep your confidence in Miami’s strong market or start reducing the price to sell?

CM. Sellers do have to be realistic with their list prices. However, inventory is still low, and demand is healthy. Economics 101: Supply and Demand.

IN. Even with strong demand this year in Miami, how much are interest rate hikes going to affect the real estate market?

CM. Luxury buyers do not need financing. When rates were historically low, buyers often financed their purchases but as rates rise, this will change.

IN. Do you think prices could return closer to the level pre-pandemic or never again?

CM. Again, because of the lack of supply, prices will not fall to the pre pandemic level. The summer months are normally slower in South Florida so the market will slow down until the winter buyers are back.

IN. How do you analyze the market in Key Biscayne under the current conditions?

CM. Calmer this summer, but with the very low inventory — 22 single family homes for sale versus around 125 homes in previous years — there will still be buyers out there in the real estate market for quite a while. it is still strong but not as frantic as previous years.

South Florida is still the place to be worldwide.