Today, I’d like to discuss an article published in the Korea Daily about the real estate market in Los Angeles and Southern California, and explain why those market conditions don’t necessarily apply to New Jersey—especially Bergen County, including Palisades Park and Fort Lee.
Although both markets are part of the U.S. housing market, they are following very different trends.
LA Is Showing Clear Signs of a Buyer’s Market
According to the article, Southern California, including Koreatown in Los Angeles, is gradually shifting toward a buyer’s market.
Inventory is increasing, competition among buyers is easing, homes are taking longer to sell, and more sellers are reducing their asking prices. The article also notes that more sellers are withdrawing their listings after failing to achieve their desired price, only to relist them later.
Interestingly, however, home sales have not increased significantly despite these buyer-friendly conditions.
Why?
The biggest reason is still mortgage interest rates.
Many buyers feel that with today’s mortgage rates, home prices should come down further.
Sellers, on the other hand, still remember the peak prices reached during and after the pandemic and are reluctant to lower their expectations.
As a result, the gap between buyers’ and sellers’ price expectations is slowing the market.
In other words, the LA market can be described as a buyer’s market where transactions are being held back by pricing expectations.
New Jersey Is Different
New Jersey is experiencing a different situation.
While transaction volume has slowed compared to previous years, home prices have remained relatively stable.
This is especially true in Bergen County.
Communities such as Palisades Park, Fort Lee, Edgewater, Tenafly, Closter, Ridgewood, and Paramus continue to benefit from strong demand due to their proximity to New York City, desirable school districts, convenient amenities, and well-established Korean communities.
The market is no longer as aggressive as it was a few years ago, when almost every listing sold immediately.
However, it is also inaccurate to say that buyers have taken control of the market.
Instead, New Jersey is better described as a market with slower sales but limited inventory supporting home prices.
High Interest Rates Affect Both Markets
One factor both markets have in common is mortgage interest rates.
Today’s mortgage rates remain a significant challenge for buyers.
Compared to the 3% mortgage rates many buyers enjoyed in 2020 and 2021, today’s rates in the mid-to-high 6% range result in substantially higher monthly payments.
Naturally, buyers ask,
“If interest rates are this high, shouldn’t home prices come down?”
Meanwhile, sellers respond,
“Inventory is still limited in my neighborhood, so why should I lower my price?”
This difference in expectations is one of the biggest reasons today’s market is moving more slowly.
Buyers focus on monthly affordability.
Sellers focus on yesterday’s market values.
Inventory Makes the Difference
The biggest difference between LA and New Jersey is inventory.
Southern California is seeing growing inventory and increasing pressure on sellers to adjust prices.
In Bergen County, however, inventory remains relatively tight.
Well-located homes in good condition and priced appropriately continue to sell quickly.
Properties that are overpriced or have obvious drawbacks, however, are staying on the market much longer.
Rather than calling New Jersey either a buyer’s market or a seller’s market, it is more accurate to describe it as a highly selective market where buyers are much more price-conscious than before.
A Closer Look at Palisades Park
Palisades Park deserves special attention because it attracts owner-occupants, investors, and many buyers from the Korean community.
Today’s buyers pay much closer attention to several factors:
- Interior space relative to the asking price
- Parking and driveway configuration
- Property taxes
- Rental income potential
- Floor plan and interior finishes
Simply being a newly built home is no longer enough.
Buyers want to know whether the home truly justifies its price.
The Rental Market
The article also points out that rents are declining in parts of Southern California.
New Jersey tells a different story.
Rental demand remains relatively healthy in Bergen County, particularly in communities with convenient transportation to New York City.
However, not every rental property performs equally well.
Older units, overpriced rentals, limited parking, or homes lacking modern amenities may require price adjustments to attract tenants.
Advice for Sellers
Today’s market requires realistic pricing from the beginning.
The market is driven by recent comparable sales—not by what a home might have sold for during the pandemic.
Starting with an overly ambitious asking price often leads to fewer showings, longer market exposure, and larger price reductions later.
Advice for Buyers
Buyers today have more opportunities to negotiate than they did a few years ago.
However, waiting for dramatic price declines in Bergen County may not be realistic.
Quality homes in desirable locations continue to attract strong interest.
Instead of waiting for a market crash, buyers should focus on properties that have been on the market longer or have already experienced price reductions, as these often provide better negotiation opportunities.
Most importantly, buyers should identify their priorities—such as location, size, condition, schools, commute, or budget—before beginning their search.
Knowing what matters most makes it much easier to recognize a good opportunity when it appears.
Final Thoughts
The LA and Southern California market is showing increasingly strong signs of becoming a buyer’s market, with rising inventory, growing price pressure, and weakening rental conditions.
New Jersey—especially Bergen County, including Palisades Park and Fort Lee—presents a different picture.
Sales activity has slowed, and buyers have become much more selective, but limited inventory continues to support home prices.
If I had to summarize today’s market in one sentence, it would be this:
LA is becoming a buyer’s market where transactions are slowing because buyers and sellers can’t agree on price.
New Jersey is still supported by limited inventory, but buyers have become far more selective than they were just a few years ago.
For sellers, it’s important to price according to today’s market—not yesterday’s.
For buyers, it’s better to look for realistic opportunities than to wait for a dramatic market correction.
In real estate, your local market matters far more than the national headlines.