Merrick Manor developer Henry Torres took time to share his thoughts on rising interest rates, residential pricing trends, inflation and more in the exclusive Q&A below. The luxury Coral Gables building just closed out a scorching first quarter of 2022 with 40 pending and closed sales.
Question: What topic comes up most often in conversations with prospective Merrick Manor buyers?
Henry Torres: Nearly every buyer brings up the hot topic of interest rates in some form. Everyone is reading the reports on mortgage rates surpassing 4% and possibly exceeding 5% in the months ahead. We advise them that even incremental mortgage rate increases significantly impact a buyer’s purchasing power. Thus, potential buyers should move forward with purchases now before rates rise above 5% soon.
Q: Will the inevitable interest rate increases result in housing prices dropping in the Miami market?
HT: No, that is an incorrect assumption would-be buyers are making as they sit on the sidelines hoping prices will decline. The opposite is going to happen: residential prices here will continue to rise. Why? There is not enough available inventory to drive prices down, and the development pipeline is extremely limited. Lack of supply coupled with intense buyer demand will keep prices on an upward trend.
Q: How is inflation and the ongoing supply chain crisis impacting the local real estate market?
HT: Construction material costs are surging, and the supply chain problem is going to stick around for a while. That is bad news for new projects here. Those cost increases will be passed down to preconstruction buyers. In Coral Gables, new residential developments are being marketed at an average of $1,100 per square foot. When you compare that with Merrick Manor’s average price of $700 per square foot and the fact that our building is the city’s only brand-new, move-in ready condominium offering, it’s no surprise why our sales activity has been so brisk and why we are almost completely out of inventory.
Located at 301 Altara Avenue, the 10-story, 227-residence Merrick Manor’s pet-friendly amenities and lifestyle truly cannot be beat. Merrick Manor is just steps away from the world-class Shops at Merrick Park and has a Zillow Walk Score of 77, making it “very walkable.”
Berkshire Hathaway HomeServices EWM Realty is the exclusive residential sales and marketing representative for Merrick Manor.
For more information about the residences at Merrick Manor, visit the new Sales Gallery in Suite 117 on the ground floor of the building at 301 Altara Ave., Coral Gables, FL 33146 – or contact the Berkshire Hathaway HomeServices EWM Realty team by calling (305) 779-6870. The Sales Gallery is open from 10 a.m. to 6 p.m. on Monday through Friday and from 11 a.m. to 5 p.m. on Saturday and Sunday.
For more information about the Commercial spaces at Merrick Manor please call ONE Sotheby’s Manny Chamizo III (786) 486-6655.