Housing market: Luxury homebuyers in Florida will begin ’to see more options, realtor says
Douglas Elliman Executive Director of Sale Dina Goldentayer joins Yahoo Finance Live to discuss Miami’s real estate market.
- Well, it feels like 90 degrees today in Miami, believe it or not, and the housing market has also been hotter in South Florida than just about any place on the planet over the last year. At one point, home prices had risen 33% from the year prior.
How about mortgage rates, though, north of 7%? Are they going to send prices south? Let's talk about that with Douglas Elliman executive director of sales Dina Goldentayer. Nice to see you. So now these rates north of 7%, are they cooling the action there in Miami?
DINA GOLDENTAYER: The interest rates are definitely not helping, but I think they're having a lesser effect on the Miami Beach ultraluxury marketplace than anywhere else.
- Well, let me ask you, then, can you go into more detail in terms of some of the trends you've been seeing there? We saw a huge, huge rush into Miami during the pandemic. And then we saw that cool off a little bit. Cooler heads--
DINA GOLDENTAYER: Sure.
- --may be prevailing. What are the actual trends that you're seeing in the marketplace down there right now?
DINA GOLDENTAYER: It's hard to make a wide, broad-spread conclusion based off a slow summer season. So as much as I know the rest of the country wants to see Miami hurting because of the interest rates and other economic factors, we really haven't seen one property trade lesser than the prior sale, at least, again, at the very top end of the market.
- And talk about the demographics, who the buyers are. We know that at one point, you would get a lot of international buyers. Is that still the case, or is it people more so coming from some of these other cities and flocking to Miami?
DINA GOLDENTAYER: Sure. Well, the biggest sales that have recently happened-- we finally had a sale over 100 million. The Bezos family made a $75 million purchase in Miami recently. There was another sale on Golden Beach for 93 million.
Those are all Americans. And that very much remains the trend. The Europeans are trickling back in. The Brazilians are trickling back in. But it still has been a very American-driven marketplace.
- Remarkable to see $100 million listings now somewhat the norm. Tell us about your own. What do you get for 100 mil?
DINA GOLDENTAYER: For 100 million, you would have the largest single oceanfront parcel in all of Miami-Dade County. There is a 30,000-square-foot home on the property that does need a renovation completed. It's what we call decorator-ready.
It does have a fully-approved permit from the city of Golden Beach, which would save someone nearly three years of time. So that is-- that's what 100 million gets you.
- Dina, I got to tell you, I am rooting for Miami. I lived at 35 years. My last residence was in Coconut Grove. I'm just wondering how the area is doing down there. Anything exciting you?
DINA GOLDENTAYER: Coconut Grove is doing great. It really has been discovered. It's no longer like a sleepy artistic colony. It's a very popular neighborhood because of the schools that are in such close proximity.
I definitely feel we're gonna have an amazing season. We're coming off of a slower summer. But in that summer, we still had hundreds of millions of transactions take place. As long as people don't like paying state income tax, and as long as they want to go for a walk with their dog wearing a nice watch, Miami and Miami Beach in particular are going to be just fine.
- It sounds like Jared's kind of place. Oh, I do want to ask you, in terms of what you're seeing in terms of inventory-- because we know that's been a problem for a lot of areas, especially when you--
DINA GOLDENTAYER: Yeah.
- --have so many people rushing in all at once. How is that picture looking?
DINA GOLDENTAYER: There's definitely more for buyers to look at. So the buyers that may have been here last season and literally felt like they had to make an offer the first house they saw, they're going to see more options. But anything that's really premium quality, like a west-facing, sunset-facing modern home, it's still probably never gonna hit the market. There's enough off-market demand for a product like that.
- I do want to get back to the ultra high-end. You have, as you mentioned, a $100 million listing.
DINA GOLDENTAYER: Yeah.
- I mean, is this coming from like the Ken Griffins of the world moving from-- you know, moving Citadel down to Florida? What's behind this trend?
DINA GOLDENTAYER: Absolutely. I mean, Ken Griffin has been the best thing to probably ever happen to South Florida real estate. He is a trendsetter, and other hedge funds and private equity firms are following him down here. And I think it's just the beginning of that trend. So we're definitely starting to see 100 million become the new 50 million.
- Sounds like a new reality show. "Million Dollar Listing" is so 2018, 2019. We need "$100 Million Listing." Perhaps you host that. Dina Goldentayer, good to see you. Thank you.
DINA GOLDENTAYER: I pass. I pass.