BROADCASTS.com

b'With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry Story continually reminds us that the real estate market is sensitive to outside factors, so it\\u2019s smart to know which way the wind is blowing in 2017 if you plan to buy or sell.
How high will they go?
Yes, the Fed has been threatening to raise rates by the end of this year and now with a new administration moving into the White House, a slight rise has already happened. Don\\u2019t worry about huge hikes anytime soon, though; most experts say we\\u2019ll be dealing with rates of 4-4 1/2%, still well below 5%.
We\\u2019ve been seeing low inventory and high prices for a while now, and Terry predicts an increase in price of about 3.9% for 2017. With inflation running around 2%, that\\u2019s still a gain greater than inflation.
It\\u2019s baby boomers and millennials all over again.
And what does all this mean to buyers, especially first-time buyers? Realtor.com says they will face new hurdles navigating the qualification and buying process. Higher mortgage rates mean higher monthly payments, in most cases, putting a strain on the budget of millennials who are the largest demographic group out there looking for new homes. They could find themselves priced out of the market. A bright spot on the horizon, however, is the anticipation of a stronger economy which will bring higher wages and less job insecurity to this young group of buyers.
On the other side of the demographic spectrum, baby boomers, who make up 30% of prospective buyers for 2017, will be out there are wanting to downsize. So, we have these two distinct age groups dominating the market and pretty much determining trends for the next 10 years.
Go Midwest, Young Man and Woman\\xa0
Especially for millennials, the real estate hotbed is in the midwestern cities, as illustrated in the chart below from Realtor.com for top housing markets. (A tip for business owners or entrepreneurs catering to this demographic.)
Top housing markets from Realtor.com:



1
Phoenix, AZ


2
Los Angeles, CA


3
Boston, MA


4
Sacramento, CA


5
Riverside, CA


6
Jacksonville, FL


7
Orlando, FL


8
Raleigh, NC


9
Tucson, AZ


10
Portland, OR


11
Durham, NC


12
Colorado Springs, CO


13
Jackson, MS


14
Detroit, MI


15
San Diego, CA


16
Salt Lake City,'