Airbnbust: Palm Springs home’s sharp price drop signals a cooling real estate market trend.

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via newsweek:

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.

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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.