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 inconsistent sales trend continues at Palms Condominiums with one sold unit in the third quarter, an increase over this time last year. Palms Condominiums are a vacation rental restricted property, so generally not a property for income generation. This year has seen lower second home activity given higher interest rates and other buyer headwinds.