Good Deal: Condo at The Sutterfield

Amidst all the new and shiny projects consistently coming on to the San Francisco market, it’s important not to overlook solid buildings like The Sutterfield. Built in 1993, the property is located on Sutter, between Franklin and Gough, and has all the amenities you’d need—a fitness room, sauna, security.

It’s also a good location for a deal: Unit #818, which I visited on my broker tour this week, is a very lovely 2BR/2BA with hardwood floors, a remodeled kitchen, storage, and nice city outlooks. Priced at $798,000 for about 1,000 sq feet, there’s room to move in the price. (The sellers paid $780,000 in July, 2007).

There are five other units available in The Sutterfield, ranging in price from $485,000-$979,000. They’ve all been on the market for a while.

Update: SF Property Tax Reductions

Our assessor-recorder’s office just announced that it’s completed all the requests by San Francisco homeowners for temporary reductions in assessed property value. All told, there were 810 homeowners who actually received the reductions, and a total of 1,673 requests. The average reduction was 11.5 percent.

Most reductions were centered in the Financial District, Bernal Heights, SoMa, and the Crocker Amazon/Hunters Point areas.

Condo Conversion Isn't Getting Any Quicker

No surprises here. Three- to six-unit building owners have the right to pursue condo conversion through a lengthy and time-consuming lottery system. A total of 1,844 TIC units applied for conversion this year. Unfortunately, the cap is still set at 200 conversion approvals.

Better yet, there are 2,100+ TIC units expected to apply in 2009. At this point, it’ll take an average of 24 years to condo convert for a 2010 applicant.

What You Can Buy for $650,000 or Less

Prices for two-bedroom condos in San Francisco are a bit softer these days. So what can you get for $650,000 or less, that also includes parking?

There are currently 59 condos on the market in this range. If you’re flexible on location, there are definitely deals to be had. Some of the neighborhoods involved: Outer Richmond; Outer Sunset; Western Addition; Diamond Heights; Twin Peaks; Mission; South of Market.

As for the rest of the city, prices are holding steady, with multiple and preemptive offers coming in on the most centrally located, Edwardian/Victorian units with all the amenities.

Higher Conforming Loans Wind Down

Remember the economic stimulus act from earlier this year? Part of the deal was a temporary increase on the loan limit for mortgages backed by Fannie Mae and Freddie Mac, to a maximum of $729,750. It’s important to note that that limit will not apply after the end of the year.

I hear that lenders will be shutting down the pipeline for these loan amounts in late November/early December. So there are actually only six or seven weeks left to take advantage of the higher conforming loan limits. So if you have any real estate financing to complete that involves a loan of $729,750 or less, it’s time to push things through as soon as possible.