Palm Springs Home Flips for Loss After Renovation Frenzy Fizzles
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A Palm Springs house sold for $1.3 million in 2023, just a year after being purchased for $611,000. The buyer defaulted and it's now bank-owned and listed at $625,000.
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The original 2021 buyer made renovations, but the 2023 sale price seems unjustified based on location and comparable sales. The buyer planned a sober living home.
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Palm Springs prices soared over 60% during the pandemic as remote workers flocked there, but have dropped 25% since peaking in early 2022 with higher interest rates.
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The city capped short-term rentals at 20% of homes per neighborhood, hampering investor interest. But luxury home prices are still rising.
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This house and price history are anomalies. But it illustrates the need for buyers and lenders to research neighborhoods and do due diligence before overpaying.