As predicted, the Palm Beach real estate market continued its positive momentum through Q1 2018, marked by impressive escalations in both transaction and dollar volumes. General economic optimism persisted from 2017 into the new year, buoyed in large part by confirmation of a major tax reform package and subsequent increases in public spending, both of which drove faster economic growth. As compared with what can be described as a “historically quiet 2017” in the equities market, 2018 has experienced higher, yet more normalized volatility, a result mainly of concerns related to rising U.S. protectionism and increasing interest rates and inflation. While these moderate bouts of volatility are not expected to negatively impact the economy’s current steadfastness, they can increase the challenges associated with identifying lower-risk investment opportunities. By contrast, Palm Beach’s residential real estate market, insulated by the town’s intrinsic beauty, unparalleled safety and security, advantageous tax structure and robust demand demographic, continues to offer prudent investment opportunities relative to the comparable alternatives.
