Keller Williams’ Michael Frangedis sheds light on Florida real estate
Keller Williams Realty is a technology and international real estate franchise headquartered in Austin, Texas. It bills itself as the largest real estate franchise by number of agents and sales volume for 2018 and 2019. Founded in 1983 by Gary Keller and Joe Williams, it has grown from a single office in Austin to approximately 940+ offices with more than 180,000 associates worldwide. from May 2018. Michael Frangedis is a Florida state real estate agent who spoke to the National Herald.
TNH: With geopolitical instability in other parts of the world, as well as inflation and rising interest rates here; could you discuss the effects on real estate?
Michael Frangedis: I’m looking at the United States as a whole, because with interest rates still so low, there’s a lot of movement, which creates both a buyer’s and a seller’s market – which is unique because we haven’t had that for probably 38 years. . Since interest rates are so low right now, this creates a phenomenal opportunity for buyers to go out and buy their dream home. At the same time, it’s good for sellers as they get multiple offers on properties, creating a seller’s market. The highest I’ve had to date was 51 bids on one property. I had to put everything on an Excel spreadsheet to review to make every offer equal and sustainable for the seller. I think there’s still a market here in this country for real estate, and I also have a lot of investors who want investments in the United States, whether it’s multi-family, commercial or of single-family dwellings.
TNH: How do you see real estate this quarter and what are the trends for the coming months? What do you see happening in the Manhattan markets these days, or any other markets in the United States that you work in?
MF: I see a lot of volatility in the Manhattan market. There are a lot of financial advisers that I am still in contact with and they say that New Yorkers are leaving in droves and selling everything they have in Florida basically because of the tax benefits and better housing. Florida has no income tax, which is a big plus. There are people who sell their homes for $2,000,000 to $3,000,000 and come to Florida and buy an $800,000 house that in New York would be much more expensive. I think we will continue to see this market primarily from New York, Manhattan and the boroughs to suburbs and other states. Over half a million people moved to our state last year, which was the fastest growing state in the country. The majority of people were from New York. Some people are driven by the political arena and that is another deciding factor. Besides taxes, people make decisions based on their political views. In terms of trends, I see interest rates have gone up three times, and today they went up again. When this happens, it slows down buying power, meaning where someone could buy a house for $400,000, their buying power now drops to $385,000. What this means in terms of trends is that the market will change and will have fewer buyers on the table. Fewer buyers means more inventory for housing. More housing inventory means fewer offers, which means fewer people will get what they ask for. This is a trend that I see gradually developing. I think this trend will likely continue over the next three quarters and given that the midterm elections are approaching, you could see interest rates stabilize or even drop a bit just to create some excitement on the market.
TNH: The rental market has experienced a phase of frenzy. What do you think of this and what would you recommend to your customers in terms of buying or renting?
MF: Absolutely, 100% don’t rent. I would highly recommend anyone moving to Florida or any area to stay at an Airbnb, for a week, a month. Go visit the area and see what you like, talk to real estate agents who have been in the area for at least 10 years. A lot of new realtors don’t know the industry, don’t know how interest rates work, how the consumer price index works. These are all market indicators, on how you make a decision. It’s not just a house; it is an investment.