California’s hottest luxury homes are getting cheaper. But why?

For years, Palm Springs symbolised California's red-hot luxury housing boom, with affluent buyers snapping up second homes and vacation properties at record prices. That frenzy, fuelled by pandemic-era remote work and ultra-low mortgage rates is now fading.Housing prices are falling in California’s most sought-after luxury markets, with two upscale homes in Palm Springs seeing price cuts up to $70,000, according to a recent report.According to online property search marketplace Redfin, homes are typically taking 70 days to sell and, even then, for nearly three per cent below their asking price.Only about 9.6% of homes are selling above the listed price, in a competitive region, once soaring with demand.The New York Post reported that a recently built home reduced its asking price by $30,000, to $1.555 million.A steeper reduction of $40,000 was seen in another Palm Springs luxury property, whose asking price fell to $1.598 million.As per…