‘Casa Encantada’ — the most expensive residence in California — has its price slashed to $165M

Casa Encantada, touted as the most expensive residence in Los Angeles and in California overall, just received a significant price cut — dropping from an eye-watering $195 million to $165 million, according to a release from the listing brokerage.

But don’t call it a bargain just yet — this ultra-exclusive estate is still looking for its perfect buyer.

For that price, a new owner stands to get a property perched on 8.4 acres overlooking the Bel-Air Country Club.

Built in 1937 by James E. Dolena and meticulously restored by designer Peter Marino, the 40,000-square-foot property boasts no fewer than 60 rooms.

Its elegant fittings include a walnut-paneled library to an Art Deco-inspired living space complete with a lucite bar.

A 60-foot tiled pool, manicured rose gardens, a tennis court with a viewing pavilion, and sprawling lawns adorn the outside areas.

Its storied history adds to its mystique.

Once home to hotelier Conrad Hilton, who dubbed it “The House Where Dreams Come True,” the estate was purchased by billionaire David Murdock in 1980 and later sold to businessman Gary Winnick for a record $94 million in 2000.

Winnick spared no expense in the restoration, even hiring eight Parisian artisans to hand-lacquer the dining room walls over the course of months.

In today’s market, where $100 million price tags no longer command eager lines of buyers, experts remain cautiously optimistic.

“Casa Encantada is one of the finest residences in the United States,” Compass agent Josh Flagg said in a statement.

“If this was 2017, the house would be sold by now, but given the state of the market, there aren’t buyers lining up around the block for any house over $100M.”

With that said, there are people out there that can afford a house like this, and “it just takes that one person,” Flagg added.