California house price halved in just 9 months as market suffers shock wave

A home in Palm Springs, which was sold in March for $1,400,000 and put back on the market some two months later for roughly the same amount, is now going for only $635,000—a price cut of $765,000.

Many areas across California, one of the most expensive markets in the entire country, have experienced steeper price drops than the rest of the United States since the beginning of the nationwide cooling trend which began in late summer 2022.

In cities like San Francisco, one of the most overvalued urban areas in the country, home prices have dropped by over 10 percent since reaching a peak in 2022, while on a national average, the price correction was rather modest. That’s because aspiring homebuyers have been struggling with higher mortgage rates as well as skyrocketing prices in the Golden State, bringing down demand.

A housing development under construction photographed on July 23, 2023, near Palm Springs, California. The price of a home in Palm Springs listed on Zillow has more than halved since May.
David McNew/Getty Images

The 1,260-square feet Palm Spring home was repeatedly listed on Zillow, removed and reposted on the website since the latest purchase process in March. The home was first listed on May 6, 2023, for $1,399,000 and then taken off the website on July 13. Another listing was made on July 14, when the house was on offer for $1,270,000, but that same listing was removed on September 30.

The one-floor house was then put back on sale on Zillow on October 2 for $950,000, and on November 11, its listed price was slashed to $675,000. That same listing was removed on December 16, and the house was put back on sale on Zillow for the current value of $635,000 on Monday.

The property is a single-family residence with three bedrooms and two bathrooms, according to the listing. It was built in 1979 and it’s estimated by Zillow’s Zestimate—the website’s free home value estimator—to be worth $634,400. The listing boasts a “brand new pool and spa” and “modern tile flooring” in a “highly desired neighborhood in Palm Springs” with “convenient access to downtown.”

Newsweek contacted the agent listed as a reference for the property on Zillow via a form on the website on Tuesday.

In Palm Springs, according to Zillow, the average home value was $651,273 as of November 30, down 2.5 percent year-on-year. In California, the average home price was $746,055 as of the same day, up 2.3 percent year-on-year.

Despite the many cities still experiencing drops across the state, home prices have started bouncing back across California because of a chronic lack of inventory.

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