Some Areas of California See House Values Plummet

Some Areas of California , See House Values Plummet.

'Newsweek' reports that many areas across California, typically one of the most expensive housing markets in the United States, have experienced steep price drops.

One Palm Springs home, which sold in March for $1,400,000, was put back on the market just two months later and is now selling for just $635,000.

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That's a $765,000 price drop.

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The property was repeatedly listed, removed and reposted on Zillow, each time at a significantly lower price.

According to the listing, the three-bedroom, two bathroom residence boasts a "brand new pool and spa" and "modern tile flooring" in a "highly desired neighborhood in Palm Springs" with "convenient access to downtown.".

As of the end of November, the average home value in Palm Springs was $651,273, down 2.5% compared to the same time in 2022.

Overall, the average price of a home in California was $746,055, an increase of 2.3% compared to 2022.

'Newsweek' reports that a chronic lack of inventory has driven home prices higher across other parts of California.

In addition to skyrocketing prices in the Golden State, would-be homebuyers have struggled with high mortgage rates, which has significantly impacted demand.

Meanwhile, in cities like San Francisco, the cost of homes have fallen by over 10% since peaking in 2022.