As anticipated, the Palm Beach residential real estate market has performed positively through the first half of 2018. From a broader context, the U.S. economy continues to excite, now nine years into the second longest recovery (finally now an expansion) in U.S. history and, while “distractions” persist, there is a reasonable probability that this will become the longest U.S. expansion on record. Low unemployment, rising wages and surges in consumer and small business optimism have buoyed the national economy, while the outlook for the global economy remains generally positive, with isolated exceptions such as Brexit-related uncertainties, etc. However, both the political and economic environments, the former marked by conspiracy theories and fears of trade war, the latter by rising interest rates and the uncertainties of January’s tax cuts, have contributed to the volatility witnessed since the start of 2018. As mentioned in last quarter’s report, while these bouts of volatility can increase the challenges associated with identifying lower-risk investments, they can also reveal attractive opportunities for long-term investors. The Palm Beach residential real estate market, insulated by the Town’s incredible safety and security, advantageous tax structure and steady demand base, continues to offer prudent investment opportunities relative to comparable alternatives.
