The U.S. economy closed the fourth quarter of 2025 on stable footing, with growth moderating to a sustainable pace, inflation continuing to ease, and recession risks receding. Productivity gains, particularly from AI and technology adoption, have helped cushion the impact of elevated interest rates, while labor market cooling has remained orderly rather than disruptive. Heading into 2026, the outlook supports cautious optimism, backed byeconomic resilience and easing inflation, though markets remain sensitive to policy shifts, labor trends, and growth durability.
Locally, the Palm Beach residential real estate market maintained strong momentum, with the single-family sector closing 2025 with more than $2.0B in total sales volume which is only the third time on record (2020 and 2022) the market has surpassed this threshold. Similarly, the Mid-Town condo market outperformed expectations for the year, amassing a dollar volume increase of nearly 80% compared to year-end 2024. Pricing continues to reflect sustained demand, with Palm Beach recording its highest single sale ever on record this year with an off-market, oceanfront deal totaling $177+M. These results highlight the strength of demand across Palm Beach’s residential market, supported by continued in-migration and constrained supply. We expect momentum to continue as Palm Beach remains a premium and preferred destination for long term investment and lifestyle driven demand.