As anticipated in our previous report, the Palm Beach real estate market demonstrated an overall positive performance in the second quarter. While fears of a recession loom, recent economic activity looks unlike any other “pre-recession” on record. Although economic output fell in the first quarter, the job market remained strong through the first half of the year, and demand for workers is still abundant. Volatility in equity markets is unlikely to ease until central banks feel inflation is under control, which often simultaneously signals recession. And if a recession is inevitable, most economists predict it will be shallow, short-lived, and not in the near-term, a “bend-but-don’t-break” scenario, that will ultimately assist the Fed in managing inflation (JP Morgan).
