THE GREAT CONDO RESET: WHY BANKS ARE SIGNALING LOWER VALUES, AND WHAT OWNERS NEED TO DO NOW

By Brian Maser, Founder & Broker, The Condo Experts | October 2026

I’m calling it: The Great Condo Reset.

In 25 years of selling condos in Los Angeles, I have never seen values hold when banks make loans harder to get. Not once.

Since August, lenders are reviewing nearly every condo building before they lend. They believe condo values are coming down, and they’re protecting themselves. Big money already knows.

What we’re seeing on the ground

In the market data: Across the industry, the majority of new escrows are starting well below what closed in the last three months — in many cases close to 10% lower. That’s the tell.

In our own buildings: We’re seeing Los Angeles buildings with strong finances and healthy reserves fail the new Fannie Mae and Freddie Mac rules. When that happens, the building goes non-warrantable, conventional buyers can’t get loans, and every owner’s value takes a hit.

From our title reps: They’re handling more condo short sales than they’ve seen in years. They’re also seeing the first HOA defaults.

In the national news:

• HOA foreclosures are up nearly 40% in two years

• Los Angeles condo sales had their worst start since 2005

• Fannie Mae is tightening condo loan rules for 2027, with a 15% reserve requirement taking effect January 4

• Southern California condo owners are receiving surprise assessments of $26,000 and up

If buildings with strong finances are failing, don’t assume yours will pass.

The media is usually three months behind, and it’s focused on the $10 million mansions. Condos are the meat and potatoes of the Los Angeles housing market — and right now they’re telling us values have already dropped. The reports will catch up.

We built something to help: CondoNAV

CondoNAV is an underwriting tool for your building. It gathers your HOA’s records, organizes them, and reviews them the way a lender will — under the new Fannie Mae and Freddie Mac rules. It tells you exactly where your building stands before anyone else does.

• Selling? Know where your building stands before a buyer’s lender finds out.

• Refinancing? Know whether your building will pass before you apply.

• HOA board member? Find the gaps and fix them before your building goes non-warrantable.

• Buying? Know the building before you make an offer.

• Holding? Make your condo part of your financial plan, not a question mark.

Getting organized now fast-tracks every one of these situations. Starting is free; some HOAs charge for documents, and we can get the order processed for your building. You don’t have to work with us to use it.

How we do it differently

Very few people have spent 25 years focused only on condos and townhomes in Los Angeles. We have. Along the way, we didn’t just sell them — we built systems and processes around them.

We’ve learned that when you take certain steps in the right order, you win. We’re now sharing those systems with everyone in the marketplace: owners, HOA boards, realtors, and lenders. Our Pre-Packaged Condo Sale™ gathers HOA documents, seller inspections, and title disclosures before a property is listed — so a buyer finds no surprises. CondoNAV adds a full lending review on top of that, available to the entire Los Angeles and California market.

We want you to know how to do this. We’re glad to guide you, anyone in your building, or anyone helping you.

What owners need to do now

1. Know your building at CondoNAV.com. It’s the first and most important step, no matter what you plan to do next.

2. If you need to sell, sell prepared. Price it right and use our Pre-Packaged Condo Sale™ so a buyer finds no surprises going into escrow.

3. Holding, buying, or refinancing? Start in the same place. The earlier you know where your building stands, the more options you have. The Condo Experts can walk you through next steps.

What’s gone is gone. Now it’s about slowing the bleeding. The owners who get organized will do better than the ones who don’t — and the gap between those two groups is widening fast.

I’ve been warning about this for years. Now it has a name.

Start at CondoNAV.com.

When everything is known, everything works.