The financial markets ended the third quarter with some good news. The Federal Reserve reduced the Fed funds rate by half a point. While the cut had been telegraphed and mortgage rates had largely priced in the move, there was still a brief period of optimism. Real estate stocks rallied along with other rate sensitive sectors, and it seemed to be the beginning of a new market. Just a few short weeks later, the “sure-thing” of another half a percentage in cuts by the end of the year was not so certain. The latest inflation figures came in a little hotter than expected, bond yields increased, and there is a definite chill in the market’s air.
The weak sales trend continues at Breakers Condominiums with only one sold unit in the third quarter. Breakers Condominiums are a vacation rental restricted property, so generally not a property for income generation. This year has seen lower homeowner movement given higher interest rates and other buyer headwinds.