As of July 30, 2025, the Federal Reserve has decided to hold interest rates steady at 4.25%–4.50%, continuing its cautious stance in the face of slowing inflation and mixed economic signals.

But what does this mean for the real estate market in Long Beach and the South Bay? Here's a breakdown of what buyers and sellers need to know—plus how single-family homes and condos are trending differently.

🏦 Fed Decision Recap: No Rate Cut… Yet

The Fed’s decision this week to pause—rather than cut—interest rates has left mortgage rates sitting in the 6.5% to 7% range, depending on loan type and borrower profile.

• This was the fifth consecutive pause, signaling caution from the Fed.

• Two members dissented, advocating for a rate cut—the first dual dissent since 1993.

• Many analysts believe a rate cut in September is possible, but far from guaranteed.

📉 Bottom Line: No immediate relief in mortgage rates, but a downward trend could emerge this fall.

🏠 Single-Family Homes vs. Condos: Market Divergence

Long Beach

• Single-Family Homes

  • Median Sale Price: ~$915,000

  • Days on Market: ~49

  • Activity: 2+ offers on average, competitive in prime areas

• Condos

  • Median Sale Price: ~$560,000 (lower in some zip codes)

  • Days on Market: ~51

  • Inventory: Higher than single-family, more options for buyers

South Bay

• Single-Family Homes

  • Median Sale Price: ~$1.2M

  • Days on Market: ~36

  • Price Movement: Down ~6% YoY, but demand remains steady

• Condos

  • Price per Sq Ft: ~$719

  • Days on Market: ~35–45, depending on price and location

  • Activity: Slower movement in higher-priced units

🧠 Sellers: Single-family homes remain the most competitive segment.
Buyers: Condos offer better value and less competition.

📍 Trending Zip Codes to Watch

Long Beach

• 🔥 90803, 90807 – Coastal and upscale neighborhoods showing continued strength in pricing and activity

• 📈 90805, 90810 – More affordable zip codes seeing increased first-time buyer demand and faster turnover for entry-level single-family homes

South Bay

• 🏖️ 90275 (Rancho Palos Verdes) & 90274 (Palos Verdes Estates) – Still in high demand for single-family buyers seeking views and land

• 🏙️ 90277, 90278 (Redondo Beach condos) – Slower absorption; pricing must be competitive to move units

🔎 What This Means for Buyers & Sellers

Buyers

• Don’t wait for rate cuts to jump back into the market—there’s an opportunity to negotiate, especially in the condo space.

• If you find a well-priced single-family home, act quickly. These are still receiving multiple offers in Long Beach and the Palos Verdes Peninsula.

Sellers

• Homes priced right are still moving fast, particularly single-family homes under $1M.

• Condo sellers: Highlight HOA perks and any updates. Expect longer days on market—pricing strategy matters more than ever.

✅ Final Takeaway

The Fed’s decision to hold rates will keep pressure on the housing market through summer. Whether you're considering buying or selling, understanding the difference in product type (condos vs. homes) and local zip code trends is essential to making smart real estate moves in Long Beach and the South Bay.

📞 Ready to Make a Move?

Need a custom home valuation or a tailored buyer strategy for your neighborhood?
I'm here to help—whether you're in 90803 or 90275.

👉 Request Your Free Home Value Report
📲 Or text me directly to chat about your options.