New Mortgage Guidelines for Condominiums Take Effect in 2026 and 2027.

Condo kitchen

On March 18, 2026, Fannie Mae (Federal National Mortgage Association), which backs the conventional loans most frequently obtained for condo financing throughout the country, announced numerous changes to its guidelines.  Some may be a relief, such as the removal of the 50% investor cap (how many investors can own in an HOA), but others are more restrictive. One of the major changes is the increase from 10% to 15% reserve fund allocation in the HOA budget, effective January 4, 2027. Ten percent allocation has been a standard for many many years, but the increase to 15% means a possible increase in dues assessments. To avoid that situation as much as possible, Boards need to start planning now for next year's budget process.

What boards and property managers should do right away*

Below is a practical checklist to assist you in developing your strategy for the next few weeks:

• Calculate your current reserve allocation percentage from your annual budget
• Determine when your last reserve study was completed. If it has exceeded thirty-six (36) months or utilized baseline funding options instead of full funding options, commission a new study
• Verify your master insurance policy provides replacement cost coverage for everything excluding roofs
• Prepare a condo questionnaire packet for lenders in advance of anticipated sales
• If your association's reserve funds are currently below fifteen percent (15%), model out your options: higher dues, special assessment, or a reserve fund loan
• If your building was previously deemed non-warrantable due to investor concentration limits, confirm your building's eligibility with a lender.
• Action Item:  Find your annual budget line item for reserve contributions. Divide it by your total operating expenses. If your resulting percentage is below 15%, start developing a plan before January 2027.  
• *https://www.hoaloanservices.com/post/fannie-mae-freddie-mac-condo-guideline-changes-2026-2027-hoa-guide   

So what if an HOA does not meet these guidelines and a seller receives an offer from a buyer using a conventional loan? That buyer will not be able to finance the condo with that conventional loan, but may be able to buy with all cash, or use an FHA loan or a VA loan (if they qualify).  Buyers do buy with those options too, but a conventional loan is often preferred because it is not a government backed loan and is offered by mortgage companies, credit unions,  and banks, thus offering more borrowing options for the buyer. 

In the last year, 705 condo units in Long Beach sold per the CRMLS: 373 were sold by conventional loans; 149 sold by cash; 48 sold with FHA financing; 35 sold with VA financing; the remaining 100 sold through other types of financing.  But, as you can see the largest amount were sold by conventional loans! 

I have over 30 years' experience in selling residential properties, including condos. Please contact me for market information in all Long Beach areas, and nearby cities. For more information on these new guidelines, contact an experienced conventional mortgage professional who is  familiar with the condo market. 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

California Mid-Year Updates for Memorial Day

Memorial Day flags in Monrovia

Happy Memorial Day for 2026. This holiday is an annual reminder of how important it is to protect our freedoms, and reflect on and remember all those who have sacrificed for it. 

Updates:

1. In Los Angeles County the ban on wildfire rent gouging (10% cap) is set to expire on May 29, 2026 after the Board of Supervisors voted against a final extension.  The rental prices revert to the existing rules under the California Tenant Protection Act of 2019, which caps annual rent increases at 5% plus local inflation. There may be additional rules affecting your property, depending on your city and county location, so check with your property manager or your local housing board first.

2. Artificial Intelligence (AI) is making headway into the market, including real estate.  CAR is in the process of developing guidelines for Realtors concerning the use of AI in their practice, transactions, and listings. AB 723 requires transparent disclosure concerning any digitally altered images used in marketing, advertising, listings on the MLS, including those involving the use of AI.  Read the new changes to the Business and Professions Code.

3. In April, HUD sent out a letter to fair housing associations and real estate professionals stating it is not a violation of the Fair Housing Act to share information about schools and neighborhood crime rates with clients. It may sound simple, but Realtors have long been cautioned on this in the past because sometimes descriptions can become subjective, or sound that way.  National Association of Realtors states in response:

"The National Association of REALTORS® (NAR) agrees that consumers seeking information about neighborhood schools and crime should have access to accurate and complete data during their home search. Consistent with this position, NAR’s Code of Ethics and Standards of Practice explicitly allow members to share neighborhood demographic information, as long as it is not racial, ethnic, or religious. Since the 1980s, NAR guidance has encouraged members to share objective, factual information about schools and crime, provided by a reliable third-party source. At the same time, NAR has advised caution about the way these topics are discussed. Subjective commentary, personal opinions, or hearsay about schools or crime have been cited as evidence of discriminatory intent and intentional steering in numerous fair housing legal cases."

My approach has almost always been to provide resources where buyers--who want to know more about an area--may look and investigate, i.e, local police department website, other online crime data, and school resource websites. 

 4.  Condo Owners or Future Buyers: After the devastating collapse of the Florida condominium structure in 2020, condominiums have increasingly been in the eye of insurance companies and lenders. FNMA, which provides the guidelines for conventional mortgages nationally, has new requirements, some of which are in effect now, and others in effect as of  early 2027.  Most visible is the requirement for increase annual budget reserve from 10% to 15%, this will be in effect January 4, 2027, which means Boards of Directors need to complete their budgets by that time.  Lenders on FNMA conventional loans (most of the conventional loan market) must now collect HOA governing documents, financial statements and budgets, reserve studies and insurance certificates as part of their lender approval process for the buyers. These are only part of the new requirements-- the good news is that FNMA has also loosened up on some guidelines, i.e., no restriction on number of investors. Why is this so important? If you want to sell your condo and a buyer with an approved conventional loan presents an offer, their lender will need to meet all these guidelines, or you may have to wait for another buyer with a different type of loan. In the last 6 months and in the last year, more than 50% of condos sold in Long Beach as listed in CRMLS were with a conventional loan (161 out of 291 and 364 out of 668, respectively).

If you are interested in attending a Zoom meeting in the future with a major lender about these changes, please contact me and I will keep you notified of this opportunity. See my  contact information below.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Los Angeles County Tax Assessor Homeowner Alert Program

Vehicles on the freeway

Don't let a situation race by you unnoticed. 

Attempts at fraudulent transfer of title or other acts against your property may be more common than you think.  One of the real estate scams concerns dealing with vacant land where the property you were shown is not what's on the deed, others are deceiving elderly owners, owners facing foreclosure, or forged signatures.  Missing property tax bills or denial of building permits are other signs of fraud.

The County Assessor's office now has an alert program, which I strongly encourage people to look into so that you do not suffer from anyone attempting to take what is yours.  You can sign up for the Homeowner Alert Service  at the link.  The website contains other information about how to recognize fraud. 

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

What Are the Effects of the Iran War on Real Estate Market?

Long Beach Shoreline

The escalation of conflict and war since February 2026 has affected oil supply, which in turn has affected our gas prices, among other things. California's gas prices are higher than other states, on average, and Californians are seeing that directly at the gas pump. 

But in spite of lowered consumer confidence in countries around the world, and increased inflation, global home prices continued to grow in the past three quarters. In the twenty-six countries listed in the Quarter 4 2025 report, home prices increased year-over-year in Portugal, for instances, by 23.3%, compared to the U.S. which rose 3.4% in the same time period.  The number of years a skilled worker had to work to buy a 650 sq.ft apt near the city center was highest in Hong Kong and Paris, between approximately 12 and 14 years,  compared to Los Angeles at approximately 6 years which was 4th from the bottom of the list of 21 major cities. 

Top U.S. markets for international buyers in Quarter 1 for 2026 included Los Angeles-Long Beach-Anaheim metro area which got 4.6% of the traffic share (ranking 3rd), falling just under New York City area at 4.7%.  Canada had the most demand in the Bay Area out of 10 countries, and also the most demand in the Los Angeles and Sacramento regions. 

To see the complete report and more about what brings buyers to California, please go to https://www.abodes.realestate and click on the "Unlock Market Trends" button to go to the Market Reports page and The Iran War Impact on the Global Housing Market, and other area reports which you may download for future reference.         

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Average Single Family Selling Prices Near Long Beach CA

 Average selling prices in this set range from over $2 million to the lower $900,000 range. Average selling prices can differ from median prices, and of course each of these areas has a low end and a high end, plus condos which usually sell at a lower average price which can make a market more affordable for some buyers.

Figures are for the last 6 months for an average home sold (click to enlarge):

       

In comparison, Long Beach, a larger city, had 637 SFRs sold at an average price of $1,145,503, in the same time period.

Want to know more about a particular area? Let me put my knowledge to work for you!

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Are There Rental Laws in California Condos?

Four story condominium bldg

Condominiums, also known as "separate interests", have been viewed by some buyers as rental opportunities for investment purposes.  HOAs may or may not have updated governing documents which address the most current requirements concerning rentals: some HOAs may tell owners that no rentals are allowed, and at the other end of the spectrum, some do nothing to  address how many rentals there are.  

But the truth is that a law was passed that effective January 1, 2021, common interest developments may limit the total number of rentals to no less than 25% and vacation rentals (30 days or less) may be prohibited. Civil Code § 4741). HOAs (common interest developments) were required to amend their governing documents by December 31, 2021. But even if they don't, the law is still in effect. Occasionally, in some MLS listings are statements that contradict the current law, so if a buyer in escrow sees contrary information in the CCRs or operating rules, or any other document, it would be a good time to review with their agent or an attorney about the purchase.  Or another situation is that the HOA wants a lower renter percentage than what is currently allowed, another reason to ask questions in escrow if you believe that you're legally entitled to have a tenant occupied property after close of escrow. Or you decide you can have a tenant, but it turns out there's a waiting list and another owner is entitled to rent out their unit next. 

"Accessory Dwelling Units (ADUs) and junior ADUs do not qualify as a separate interests under this law. Moreover, a separate interest, an ADU or junior ADU is not counted as occupied by a renter as long as the separate interest itself is occupied by the owner. A $1000 penalty can be assessed against a CID that willfully violates these rules." 

However, there would still be allowance for "reasonable" restrictions on rental or leasing a separate interest even if that reasonable restriction results in less than 25% of the separate interests being rented. And to complicate the picture a little, the right of any owner who acquired title to their property before January 1, 2021, to rent or lease their property remains unchanged.  Prior law held that: an owner (member) in a common interest development is exempt from any prohibition in a governing document against renting or leasing their property, unless that prohibition was in effect before the member acquired title. The law does not apply to rental prohibitions in effect before 2012.  An owner who does rent a property is also required, prior to renting a unit, to provide to the HOA verification of the date the member acquired title and the name and contact information of the prospective tenant or prospective tenant’s representative. And some HOAs may require a copy of the lease prior to the tenant moving in.  "A  member’s right to rent under this law includes transfers exempt from property tax reassessments, such as probate, inter-spousal, and parent-to-child transfers, or a transfer to add a joint tenant."

 (Cal. Civ. Codes §§ 4740 and 4741.)

So if this sounds just a little complicated, as a prospective buyer who is looking at a property for rental purposes within an HOA, you must 1) know the current law at the state and city level, and 2) carefully review the Association's documents.  HOAs have the right to monetarily penalize for violations, hold hearings, or take other enforcement action.  This is why reviewing the governing documents is so important. 

 Additionally, some cities have laws that restrict your ability to host paying guests for short periods, typically aimed at Airbnb type rentals. These laws are often part of a city's zoning or administrative codes. In many cities, you must register, get a permit, or obtain a license before you list your property or accept guests. Certain types of short-term bookings may be prohibited altogether. Local governments vary greatly in how they enforce these laws. Penalties may include fines or other enforcement.

(California Association of Realtors "Homeowner Associations: A Guide For REALTORS®"  was a helpful resource for this post.) 

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Long Beach Single Family Market March 2026 Slide Presentation

For full screen click on Full Screen below

Long Beach, California March 2026 Housing Market Trends

Single Family Residence

- Months Supply: 1.9 months (MoM 11%; YoY -4%)
- Median Sold Price: $1,044,000 (MoM 7%)
- Sold-to-List Ratio: 99.81% (MoM -0%)
- Median Days on Market: 14 days
- Listing Snapshot: New: 199 ($1,095,000); Active: 226 ($1,162,500); Pending: 135 ($949,950)

Long Beach offers vibrant cultural experiences throughout the diverse downtown and neighboring market areas. As market conditions evolve, understanding inventory trends and timing your sale and purchase can create opportunities for you in 2026. 

For expert guidance in navigating both buying and selling in Long Beach, contact Julia Huntsman at Huntsman Properties.

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

What about the Smart Home Devices When a Long Beach Home is on the Market?

Keypad being set for smart device

The outside cameras and doorbell cameras are familiar to many people. But what about the interior of a home? Videos on during showings have been a showing occurrence for a number of years, but be aware of capturing sound without consent in California, which has certain restrictions about this. 

Smart devices generate and store data. So agents and buyers and other visitors to a home on the market should be aware that technology may impact privacy, and that conversations about a listing inside a property may not be confidential. While sellers are advised to give notice about video recording at the entrance to home visitors,  agents are not responsible for the installation of such technology, so parties should be aware of holding conversations about negotiations or other remarks while they are in the property.  Agents and buyers should actually assume that surveillance devices could be present when visiting a property, and act accordingly.  So do not discuss offer strategy, inspection findings, or other opinions about the property while you are in it.  It's easy to forget this, but even casual remarks may have an impact on the seller's impression of a prospective buyer and how a subsequent offer can be viewed.

A homeowner may not even be aware of the device's capacity, as privacy policies and  terms of setup can be lengthy, and then not reviewed after installation.  A buyer and agent should not take for granted the privacy of conversations while in a property.

Especially in new homes, connected technology is less of a "feature" and more part of the infrastructure.  So being more aware of how smart devices function can lessen any surprises after a showing. 

For more information about your home's value in this market, I can help with local market information in Long Beach and surrounding area. 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

The ‘Ugliest House of the Year’ Gets a Dramatic Makeover

Remodeled Home

The house in this article is located in Boise, Idaho. It wasn't just ugly, it needed a lot of work, and the type of home even some investors would not want to work on.  The article shows several before and after photos (this image is after the work) which are worth examining well, because they show not only a major cleanup, but how living spaces can be reimagined. The owners invested $100,000 in the overhaul of this property.  They not only improved the property, but they helped to improve the neighborhood in the style that was already there.

 The work was accomplished in 6 weeks, and was a full scale overhaul with new plumbing, flooring, HVAC, paint, and new driveway, for this 4-bedroom home on a 9,000 sq.ft. lot.

The purchase price is not mentioned, but after work was done, it relisted for $624,000 and sold shortly thereafter. 

One thing for investors to know is that in California, disclosures to the buyer must include the work done to the property, regardless of how long the property was owned, which is usually just a few weeks or months. The responsibility to disclose is the same as an owner occupant who had lived there for a longer period of time. And, REALTORs throughout the country all have the same ethical obligations as found under the National Association of REALTORS, even though there is variance in different state laws.

 If you are thinking about making a change, or are wondering if you should sell or remodel, please contact me for help on your home's valuation. 

The ‘Ugliest House of the Year’ Gets a Dramatic Makeover: A trash-filled, ‘uninhabitable’ home sheds its title after a six-week transformation.

Long Beach 90815 Housing Update for February, 2026

90815 Housing Market

The housing market in the 90815 area of Long Beach remains very competitive. This zip code includes the higher end pricing of Bixby Hill and Park Estates, and the softer prices in Stratford Square. The median sold price for homes reached $1,210,000, while the average sold price was approximately $1,234,000. Homes are also selling quickly, with a median of just 7 days on the market.

Limited inventory continues to support strong home values, with about 1.08 months of supply, which still favors sellers. Over the past three months, more than 50 single family homes sold as listed on the MLS and public records, representing more than $61 million in total sales volume.  For the 44 homes sold via the MLS, the mid-point price was $1,159,000, with the lowest 14 homes selling between $685,000 and $975,000.

For homeowners, this means property values in the area remain stable with steady appreciation. For buyers, preparation and strong offers are key in this fast-moving market.

If you're curious about your home's current value or are considering buying or selling in the area, feel free to reach out.

 

 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996