Realtors say home price increase in Phoenix could level off or plateau in 2019

TEMPE, Ariz. (FOX 10) -- If you are hoping to become a homeowner, but are waiting for prices to fall in the Valley, you might be waiting a while.

Interest rates, confidence, and inflation all factor into the housing market, and 2019 could see a leveling off or plateau of housing prices. Realtors, however, are not panicking. They expect 2019 to be a seller's market in Phoenix, but buyers won't be totally left out.

"The housing market is softening a little bit," says realtor George Laughton. "It's still continuing to be a seller's market, but buyer's are coming up with a little bit of an advantage than they used to have."

Laughton expects housing prices to still increase, although not as much. He says they've been spoiled lately.

"We've seen a great appreciating market over the last seven, eight years, and we've gotten used to that six, seven, eight percent appreciation over the years," Laughton says. "This year's going to look a little different."

Market watchers expects prices to climb four to six percent this year. Meanwhile, an interest rate hike is also affecting some potential buyers.

"I think that's getting some people off the fence to purchase now, as opposed to later, but we're still seeing that, just not as quite much demand as we saw this time last year," Laughton says

Despite the slowdown, nobody is talking crash.

At least not now.

"I assure you the sky is not falling," Laughton says. "2019 will not be a crash. At least by the numbers we look at."

Real estate website Zillow has some information on the neighborhoods with the highest home value projections. Galveston in Chandler, Sunset in Tempe and Sunland Village in Mesa are all neighborhoods expected to see more than 7% increases in home values this year.