Stone Realty Group warns that upcoming Fannie Mae and Freddie Mac changes may create longer financing timelines, a smaller buyer pool and additional pricing pressure for condo sellers
CHARLOTTE, N.C., July 31, 2026 /PRNewswire-PRWeb/ -- New conventional lending requirements taking effect August 3, 2026, could create another significant challenge for Charlotte's already softening condominium market, according to Stone Realty Group.
Fannie Mae and Freddie Mac are eliminating the abbreviated condominium review options commonly known as Limited Review and Streamlined Review. These programs previously allowed certain well-qualified borrowers, particularly those making larger down payments, to complete a less extensive review of the condominium project.
Under the new requirements, lenders may need to conduct a more comprehensive evaluation of the condominium association and building, including its finances, insurance coverage, reserves, pending litigation, special assessments, delinquency rates and structural condition.
"The buyer may have excellent credit, strong income and a substantial down payment, but that alone may no longer be enough," said Matt Stone, founder and broker of Stone Realty Group. "The financial and physical condition of the condominium project is becoming an even more important part of the loan approval process."
The changes are arriving at a difficult time for Charlotte condo sellers.
According to June 2026 data from Canopy MLS, Uptown Charlotte inventory increased 34.6% compared with the previous year, rising from 104 available properties to 140. Months of supply increased 57.1%, from 5.6 months to 8.8 months.
June closed sales fell 51.9%, while the median sales price declined 17.9%, from $420,000 to $345,000. Average days on market increased from 32 days to 96 days.
Year to date, new listings in Uptown are up 18.4%, while pending sales are down 9.8% and closed sales are down 10.3%.
"The condo market was already experiencing rising inventory, longer selling times and price pressure," Stone said. "Adding more financing friction could become a double whammy for sellers. Some buildings may take longer to approve, some transactions may require additional conditions and certain projects could have difficulty qualifying for conventional financing altogether."
Stone said the changes could create a meaningful opportunity for buyers who are prepared to perform extensive due diligence and negotiate aggressively.
"We may be entering one of the strongest condo negotiating environments Charlotte has seen in years," Stone said. "That does not mean every condo is a bargain. Buyers need to look beyond the unit and understand the association's reserves, insurance, maintenance history, assessments and financing position. The right purchase could be an excellent opportunity, but the wrong building could create expensive problems later."
Stone Realty Group recommends that condo buyers identify the project and involve their lender before submitting an offer whenever possible. Buyers should also allow additional time for financing, request condominium association documents early and confirm that their financing contingency adequately protects them if the project cannot be approved.
For sellers, preparation and realistic pricing will become increasingly important.
"Condo sellers cannot afford to put a property on the market and wait until it is under contract to discover that the building has a financing problem," Stone said. "Budgets, reserve information, insurance documents, assessments, litigation disclosures and structural reports should be gathered as early as possible."
Stone Realty Group will also be selective about the condo listings it accepts in the current environment.
"We are not interested in making unrealistic promises simply to obtain a listing," Stone said. "We will only take on condo sellers who are motivated, prepared and willing to price for the market that exists today. Overpricing in a market with nearly nine months of inventory usually leads to extended market time and repeated price reductions."
Stone added that some condo owners may want to evaluate alternatives to selling, including renting the property if their association permits it.
"For some owners, holding or renting may make more sense than selling into a crowded market," Stone said. "For others, selling now is necessary. The decision needs to be based on the specific building, the owner's financial position and the actual competition, not on what the condo might have sold for several years ago."
About Stone Realty Group
Stone Realty Group is a Charlotte-based real estate brokerage serving buyers, sellers and investors throughout the greater Charlotte region. Founded by Matt Stone, who entered the real estate industry at age 18 and established his brokerage at 19, the company has more than 20 years of experience navigating changing market conditions.
Stone Realty Group has helped thousands of families buy and sell real estate and has closed more than $2 billion in career sales volume. The firm combines local market expertise, professional marketing, negotiation strategy and transaction management to help clients make informed real estate decisions.
The company's experience includes condominium sales, luxury properties, relocation, new construction, investment real estate and residential sales throughout Charlotte and surrounding communities.
Media Contact
Matt Stone, Stone Realty Group, 1 (704) 755-5095, [email protected], https://mattstoneteam.com/
SOURCE Stone Realty Group
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