How to pinpoint the housing markets most set to decline in 2023 — and why real estate in the most expensive cities could fall 30%

• BiggerPockets’ Dave Meyers forecasts national housing prices will come down in 2023.
• However, markets with higher inventory will face steeper price corrections.
• These include cities that were exceedingly popular with investors during the pandemic.

Low interest rates, easy money, and a dwindling supply of new homes sent nationwide housing markets into uncharted territory over the last two years. As millennials hit their peak home-buying age while more investors than ever rushed into the real estate sector, home prices skyrocketed to stratospheric levels, forcing the Federal Reserve to pump the brakes on cheap lending.

But as the new year begins, this perfect storm of factors should unwind, pushing the housing market back to its historical balance, said Dave Meyer, the vice president of data and analytics at real estate educational platform BiggerPockets and a real estate investor since 2010.