The blonde beauty has now spent USD 11 million on properties on the same stretch of road after splashing out on the ranch-style home, according Radar Online.
The listing agent described her new home, which includes four bedrooms and four bathrooms, as a "warm and inviting enchanted cottage."
Witherspoon bought her first property in the area in 2003, while still married to Ryan Phillippe, and picked up a second home in the neighbourhood in 2009 following their divorce in 2007.
She dropped the asking price for the seven-acre ranch for the second time to USD 7.25 million after originally putting it on the market for USD 10 million in October.