In September 2026, 495 townhouses and condos closed in Pinellas County, and 304 of those sales were all cash. That is 61.4% of the month's closings. On the single-family side, the same report shows 231 cash sales out of 746, or about 31%. The county figures come from the Pinellas REALTORS® monthly report for September 2026, released Oct. 16. They cover Clearwater, Clearwater Beach and Sand Key together with the rest of the county.
The smaller number is the more useful one. Take cash sales out of total closings and you get the financed purchases: 191 in September 2026 and 191 in September 2025. Condo sales rose 13.3% year over year, and all of that growth came from buyers who did not need a lender. A buyer with a mortgage preapproval in hand is also asking a lender to approve the building. In condos, that second approval is the one that sorts the market.
Two markets in one county report
The same report, set side by side, shows how differently the two property types behave in September 2026.
| Pinellas County, September 2026 | Townhouses and condos | Single-family homes |
|---|---|---|
| Closed sales | 495, up 13.3% | 746, down 9.0% |
| Paid in cash | 304, up 23.6% | 231, down 23.3% |
| Median sale price | $246,750 | $465,000 |
| Median time to contract | 61 days | 36 days |
| Months' supply | 6.5 | 3.7 |
Single-family cash sales fell while condo cash sales climbed. The report itself cautions that a high cash share often reflects investors, who are more likely to have purchase money on hand, and that the figure should be read carefully. Investor appetite is part of the story. The other part is a set of financing rules that apply only when the property is a unit inside an association, and those rules have been changing during 2026.
What the lender reads after it reads your file
Most conventional mortgages are written to be sold to Fannie Mae or Freddie Mac. For a condo, that means the project has to qualify as well. Fannie Mae's Selling Guide on ineligible projects says loans on units in a project marked "Unavailable" in its Condo Project Manager system cannot be sold to Fannie Mae, whatever type of review is used. A buyer with excellent credit can still be turned down because of the building.
What makes a building a problem is spelled out in some detail. Fannie's definition of critical repairs covers deficiencies that could cause a critical system to fail within a year, water intrusion, advanced deterioration, failed mandatory safety inspections, and unfunded repairs of more than $10,000 per unit due within 12 months. A special assessment does not disqualify a project on its own. Lenders look at what the assessment pays for, how much it is, and how much is still to be collected. If it pays for a critical repair, the project stays ineligible until the repair is finished and documented. Freddie Mac's guide likewise treats projects needing critical repairs as ineligible, requires a review of current and planned special assessments, and requires lenders to review inspection reports completed in the prior three years.
The budget gets a separate check. Under Fannie's Full Review, no more than 15% of units can be 60 or more days delinquent on any special assessment. The budget must also set aside at least 10% for replacement reserves, and special-assessment income does not count toward that 10%.
This hits Florida harder than most places because of the state's own condo rules. According to the Florida Department of Business and Professional Regulation, condo buildings of three or more habitable stories must complete a structural integrity reserve study, or SIRS, every 10 years. The first deadline for existing owner-controlled associations was Dec. 31, 2025. DBPR also says the required SIRS reserves cannot be waived. So Florida's rules produce the documents, and the lender reads them against its own standards.
The calendar moved in August and moves again in January
The 2026 changes came from Fannie Mae Lender Letter LL-2026-03 and the matching Freddie Mac Bulletin 2026-C, both issued March 18, 2026. Some loosen the rules and some tighten them. In order:
- Effective immediately in March 2026: Fannie dropped its requirement that new or newly converted Florida projects with attached units go through its Project Eligibility Review Service. It also retired the 50% investor-concentration limit for established projects under Full Review.
- Mandatory as of Aug. 3, 2026: Fannie retired Limited Review for loan applications dated on or after that day, and Freddie retired its Streamlined Review for applications received on or after it. Established projects now need a Full Review or a qualifying waiver, and the last Florida-specific geographic restrictions ended.
- Also as of Aug. 3, 2026: When a lender relies on a reserve study, the association's budget must include the study's highest recommended reserve allocation. Baseline funding, which lets the reserve balance get close to zero, is no longer accepted.
- Starting Jan. 4, 2027: The minimum reserve allocation rises from 10% to 15% of annual budgeted assessment income, for Fannie Full Reviews on applications dated that day or later and for Freddie loans with applications received that day or later.
Florida Realtors summarized the result in May 2026. Full Review looks at the project itself, including its budget, reserves, insurance and financial condition, and buyers "may face more questions about a building's reserves and insurance."
The January date matters to anyone shopping this fall. The rules depend on when the loan application is dated or received, not on the closing date. An association that meets the 10% floor today could fall short of 15% for a buyer who applies in early January. Pinellas condos took a median of 98 days from listing to closing in September 2026, so a search that starts now can easily reach into the new year.
A clean report on Sand Key, and a cracked column months later
Paperwork tells a lender where a building stood when the paperwork was done. South Beach III, a 13-story condo tower at 1460 Gulf Blvd. on Sand Key, shows how quickly that can change. The Tampa Bay Times reported that a milestone inspection by Karins Engineering, sent to owners the September before the evacuation, described the foundation and overall structure as being in "good condition." The report also said no urgent repairs were needed.
In May 2025, a worker doing permitted garage slab work spotted cracks and voids in a concrete support column, and the building's management and engineer ordered a precautionary evacuation. The Times also reported that the City of Clearwater had not received the required inspection paperwork by the Dec. 31 deadline. Bay News 9 reported a week later that engineers had cleared the building for reoccupancy, with some restrictions, after shoring was installed.
For financed buyers, the takeaway is that a building's eligibility can change quickly. Under Fannie's definition, a failed safety inspection or water intrusion counts as a critical repair, and the project can stay ineligible until the work is documented. In the meantime, buyers who need a loan are limited to cash or nonconforming financing, which the Miami Herald describes as more expensive and harder to qualify for.
How common an ineligible building is
Fannie Mae does not publish its eligibility decisions. Its Condo Project Status Finder is meant for associations, management companies and their authorized advisors, and a "No findings" result does not mean Fannie has reviewed or approved the project. Fannie says 3.6% of projects nationwide had an ineligible status as of August 2025, with inadequate master insurance and critical repairs among the main reasons. The Miami Herald took a different approach. Using a confidential list from the law firm Allcock Marcus, it reported 1,438 Florida condo buildings on Fannie's ineligible database as of March 2025. The Herald also reported that nonconforming loans were still possible but could cost more and be harder to get, and that cash deals were unaffected. The two figures count different things, but they lead to the same conclusion. Before you compare prices on two Clearwater Beach units, find out whether a conventional lender will finance either building.
Supply is tightening, too. Pinellas condo and townhouse months' supply fell to 6.5 in September 2026 from 7.9 a year earlier, and median time to contract dropped from 77 days to 61. In financeable buildings, a buyer with a mortgage is competing in a market that moves faster than it did last fall. In buildings that don't qualify, cash buyers face competition only from buyers using costlier nonconforming loans.
Questions buyers ask about this
Can I look up whether a building is eligible? Not directly. Fannie Mae directs buyers to ask the association or their lender, who can check its tools.
Does an open special assessment end the deal? Not automatically. Under Fannie's guide, it depends on what the assessment pays for, how much it is, and how much is still to be collected. An assessment for a critical repair keeps the project ineligible until the work is done.
Why does the monthly median keep jumping around? It moves with the mix of units that close. The Pinellas condo median was $275,000 in August 2026 and $246,750 in September, and the report warns that median trends reflect which homes sold that month, not just changes in value.
This post is general information about published agency rules and market data. It is not legal, lending or financial advice, so please confirm how these rules apply to your purchase with your lender and an attorney.
If you are weighing a Clearwater, Clearwater Beach or Sand Key condo and plan to finance it, the association's budget, reserves and inspection history should come in early, before you settle on a price. Lisa Kirkpatrick can help you request those documents, coordinate with your lender on the building review, and time your offer around the January reserve change. Let's Connect.
