Silicon Valley Real Estate Blog – 1SiliconValley.com

September is the time of the year when the California Department of Education releases its yearly Academic Performance Index (API) scores. Here are the 2009 Growth API Scores for Santa Clara County and San Mateo County. 

We see an overall steady increase in scores compared to last year’s growth API scores.

A few notables in the following Silicon Valley Santa Clara County school districts:

Berryessa Union Elementary School District: Ruskin Elementary School continues to lead the pack and breaks the 900 barrier with a general improvement in most of the schools in the district

Cupertino Union School District: Continues to have a plethora of high achieving schools (Murdock-Portal and William Faria Elementary School and Joaquin Miller Middle School)

Fremont Union High School District: Monta Vista High increase it’s lead over Lynbrook High School from four to nine points.

Los Gatos Union Elementary: Significant increase across the board for most elementary schools

Moreland Elementary School: Leroy Anderson Elementary takes one of the largest increases in scores by an increase of 136 points to 810

Palo Alto Unified: Herbert Hoover and Duveneck Elementary Schools continue to lead the way

Santa Clara Unified: Overall Santa Clara schools had good improvement with notable Rivermark’s Don Callejon as well as Westwood and Briarwood Elementary jumping nearly 40 points.

Sunnyvale School District: Cherry Chase increases 28 points to an impressive while Cumberland drops 26 points to 905

Check out our previous post to find out what’s the difference between Growth and Base API scores and how they are calculated.

Sep.29.2009 [ Filed under: Schools, Silicon Valley News ] Comment Here »

The California Department of Education has released its 2008 Growth API scores for Santa Clara County and San Mateo County, which measure yearly improvement from the state’s 2007 Base API scores. The API (Academic Performance Index) scores are considered the cornerstone of California’s Public Schools Accountability Act of 1999, and measure the academic performance and growth of the state’s schools according to a range of academic factors.

The Los Altos, Saratoga, Cupertino, and Palo Alto elementary school districts all maintained district API averages above 900, an excellent score (which is par for the course in these districts).

The competitive Cupertino Union schools improved from an already-elite score of 930 to 941, and its border school Stocklmeir Elementary — which students who are living in Sunnyvale can attend — notched up 13 points to 959. To offer some perspective as to the strength of these scores, the average state API for all grades is 742, up from 728 last year.

This year’s score report also reflects improvements at both Cumberland and Cherry Chase, the two top elementary schools in Sunnyvale. Both broke the 900 mark once again, with respective scores of 920 and 909.

Also emerging are up-and-coming schools to watch. Take Ellis Elementary in Sunnyvale, which entered the 21^st century with a score in the mid-700s and now consistently scores in excess of 800. This year, Ellis improved 17 points with a score of 831.

The Campbell Union Elementary District’s Forest Hill is another school on the move. At a 2008 score of 888, Forest Hill is inching closer to breaking the 900 barrier. Up from 879 last year, Forest Hill was a low-800s school in 2000. We’ll continue to keep an eye on these continually improving school systems as they maintain their march up the API ladder.

Sep.08.2008 [ Filed under: Schools ] 1 Comment »

California’s 2007 Base API scores have been released and, looking at the complete list of Santa Clara 2007 Base API scores, congratulations need to go to Los Altos, Saratoga, Cupertino, and Palo Alto elementary school districts for maintaining district API averages above 900.  While this is par for the course in these districts, to put this achievement in perspective, the overall state API for all grades is 728.

There are two other metrics in the report, statewide rank and similar schools rank, both ratings from 1 to 10.  Each number represents a decile, with 10 being the top 10% of all schools in that category.

This metric compares schools that have similar characteristics, based on ethnicity, socioeconomic status, teacher credentials, and (about a dozen) other factors.  So which number matters more: the state or similar schools rank?

By far, the state number.  Let’s look at some of the Cupertino Union figures for examples. 

The third column is the state ranking and the fourth is for similar schools: Blue Hills is 10/8, Collins is 10/7, and DeVargas is 8/2.  Eisenhower and Muir (not shown) are both 10/2 with API scores of 906 and 894 respectively.

The difference in API between 10/8 and 10/7 is only 10 points, but the difference between a 10/2 and 8/2 is about 60 points.  The reason is because schools that are alike tend to have similar performance.  When you group those schools together and rank them, some turn out to be the best of the group and others the lowest-rated of the group.  

So if a 10/10 school is the best of the best, should parents be worried about a 10/2 school like Eisenhower or Muir elementary?  There is room for improvement, but a 10 means the school is in the top 10% of all schools in California.  At that level, I’d be more focused on what programs, classes and activities a school has to offer than beating other quality schools in standardized tests.

May.23.2008 [ Filed under: Schools, Silicon Valley News ] 2 Comments »

From our Geography lessons and possibly from our travels, we know that Bordeaux is a very well toured port city in the southwest of France with over 1 Million Bordelais inhabitants and is proud to be known as the world’s wine industry capital. 

It is a diverse city with makeup of all different races and cultures of people and over the last decade has become an urban metropolis.  If you live here in the Bay Area you don’t have to travel to France to visit the newest community named Bordeaux; it is located in the heart of Santa Clara County , in the urban setting of Sunnyvale.  Like Bordeaux France, Sunnyvale is known to be a diverse and culturally varied city with neighboring industry and a rich past of agricultural history.  Perhaps this is how the name of the newest KB Homes community was formed, because of this vague likeness shared with the city of the same name.

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Apr.14.2008 [ Filed under: Sunnyvale ] 4 Comments »

Don’t be fooled!  Homes in Silicon Valley come on the market in a variety of conditions from horrible to breathtaking.  Some are dirty, cluttered, and perhaps even run down. I saw one this week that desperately needed exterior paint, landscaping to be tamed, and the removal of large quantities of faded plastic flowers that droop down over the living room window (all this in Los Gatos, with a million dollar price tag). 

Most homes, though, are better prepared for sale, as they should be. Savvy homeowners and agents know that the old adage is true: "you only get one chance to make a first impression". The home needs to be clean, uncrowded, and appealing from the day it goes on the market to maximize the seller’s return.  You want to make the right changes to improve the bottom line when selling, without over-improving such that the return begins to diminish.

In addition to that range of conditions in which homes are sold by their long term owners, we have to consider the "flipped house". A flipped house is one in which an investor has recently purchased a home, often from an original or long-time owner, usually in solid condition but with a dated, tired appearance.  What should buyers be on the lookout for?

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Apr.13.2008 [ Filed under: Home Buyers ] 5 Comments »

I hope you all had a great holiday season and New Years!  Looking back, it seems that 2007 was the year of the mortgage for real estate here in Northern California.  A screenshot from the New York Times mortgage rate chart illustrates how buyers (and sellers) were impacted by the dynamics of the mortgage industry this year.

This chart shows the change in jumbo mortgage interest rates during 2007.  Put in historical context, the jumbo interest rates over the summer didn’t approach the level of rates in, say, 1981, but since 2002, the housing market has benefited from mortgage rates that are historically low.

It wasn’t 2005 or 2006, though.  In May and July, some buyers discovered the home they were interested in just became about 5% more expensive at the same price because of another interest rate bump.  (A $1,000,000 P&I mortgage costs $5,996 per month at 6% and $6,321 at 6.5%.)  All the more reason to better understand how rate locks work.

Some homeowners with adjustable rates found themselves in a similar situation and ended up attempting a short sale.  Many neighborhoods were unaffected, others were peppered with short sales — where the available homes may or may not have real estate signs indicating a sale.

But many of the markets around Silicon Valley didn’t behave like one would expect from reading the news reports.  It’s the sales transaction information that tells the best story.

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Dec.31.2007 [ Filed under: Market Updates, Silicon Valley News ] 2 Comments »

The Montebello Cupertino, located at the intersection of Stevens Creek Blvd. and De Anza Blvd., is home to over 200 homes ranging from one-bedroom condominium flats to 1700 square foot, 3 bedroom townhomes.

[ Strengths | Weaknesses | Threats | Opportunities ]
[ Recent Transactions | Neighborhood Transactions | Schools | Location and Commute ]
[ Available Condominiums in the Montebello Cupertino ]

Strengths

1)  The Montebello Cupertino is a condominium complex centrally-located at 20488 Stevens Creek Blvd. on De Anza Blvd., walking distance from the Cupertino Civic Center, shopping, restaurants and several companies.  There is a Le Boulanger on the first-floor of the complex and a Starbucks across the street.  Cali Mill Plaza next to the complex has fountains and benches.

2)  The complex was built in 2003. 

3)  The Montebello feeds into elite elementary and middle schools, which are about one mile away by foot and 1.2 miles by car.

4)  The amenities like the pool, spa, fitness center and entertainment lounge are high-quality given the price point and HOA fees at the Montebello.

5)  The corridors and passageways in both buildings are clean and well-lit.  The Verona Owners Association has an office and office hours on site.  Posted hours for the maintenance and janitorial staff are Monday through Friday 6:30am to 2:30pm.  The office is also a Santa Clara County Sheriff substation.

Weaknesses

1)  Most condos in the Montebello don’t have a lot of in-unit storage space. 

2)  Because the nine-story main building is enclosed like a hotel, you’ll get some noise from the corridors if the people walking by are speaking loudly.  (The condos that face the elevator entryways get more noise than others.)  Stronger aromas from a neighbor’s cooking will occasionally waft into the hallway and linger because condominium kitchens are positioned next to the front doors.

3)  Rear condos on lower floors in the main building get loud fan noise on their patios (usually during working hours on weekdays) from a nearby parking garage when that building’s ventilation system is on. 

4)  Unlike the main building, which requires a keycard or code for entry, the second building isn’t gated.  There is access to all four floors in the second building using both the stairs and elevators.  The walkway to the top-floor units is open-air, not covered.

5)  Guest parking underneath the Montebello complex is an adventure because of the tight spaces and large support columns.  More spacious parking with less of a chance for door dings can be had at the lot next door.  Watch for the spots marked reserved.

Opportunities

1)  The nearby Cupertino Square shopping mall is being revitalized with its new AMC movie theater and Strike bowling alley, whose traffic helps recruit new stores.

2)  While Downtown Cupertino has been called "a contradiction in terms", there are drafts of a walkable streetscape plan for Cupertino’s Crossroads Area on Stevens Creek Blvd. from De Anza Blvd. to Stelling Road.

3)  The reputation of Cupertino’s schools continues to be one of the main selling points of homes in the city.

4)  Voters are rejecting additional large condo developments in Cupertino.  In November 2006, voters rejected a bid to add 517 condominiums in the Cupertino Square redevelopment and Tantau/Wolfe cross-street.  The primary reason was to protect against overcrowding in Cupertino schools.

Threats

1)  New condos (that were already approved) are being built at the Oak Park and Adobe Terrace complexes.  Oak Park is nearby on De Anza Blvd. overlooking 280 and Adobe Terrace is just down the road on Stevens Creek Blvd.  As of this writing, pricing as not been established for these complexes.  The Montebello has a pool, spa, fitness center, and entertainment lounge, features that are not planned for these Pinn Bros. complexes.

2)  As with most condo complexes, many of the units at 20488 Stevens Creek Blvd. are similar to one another.  On resale, key differentiators would be the condo’s location, upgrades, and condition.  Owners may not always be able to sell when they want to because of competition from other similar units.

3)  The Montebello Cupertino was originally launched as the upscale Verona Apartments.  Given the strength of home sales and the weakness of the rental market at the time, Prometheus, the developer, quickly converted the complex into condominiums.  (The developer says that when the complex was first completed, the intention was to have some rentals and some sales.)  Prices in the Montebello have not been affected by its history, but some people have a negative view of apartment conversions because of the low quality in many other projects.

Montebello Cupertino Recent Transactions

Neighborhood Recent Transactions

Schools and School District Information for Montebello Cupertino

Since school boundaries and availability may change based on enrollment needs and population shifts, it is always a good idea to check with the local school district (Cupertino Union School District, Fremont Union High School District) for the latest information.

1)  Eaton Elementary School (see ratings and parent opinions).

2)  Lawson Middle School (see ratings and parent opinions).

3)  Cupertino High School (see ratings and parent opinions).

Location and Commute 

The Montebello Cupertino complex at 20488 Stevens Creek Blvd. is located in central Cupertino close to Apple, HP and Symantec. 

It has easy access to 280, 85 and 17.  While walking and driving are very convenient, public transportation is less so as the closest VTA access is in Campbell.

- Next door to Symantec Headquarters
– 0.5 miles to Target (1.2 miles by car because of U-turn)
– 0.6 miles to Whole Foods (1.3 miles by car because of U-turn; map results may vary)
– 0.7 miles to Cupertino Library; City Hall
– 0.7 miles to Apple Headquarters (1.7 miles by car because of U-turn; map results may vary)
– 1.7 miles to Cupertino Square
– 1.7 miles to HP Cupertino
– 5.7 miles to Santana Row and Valley Fair
– 10 miles to Cisco Headquarters
– 10 miles to Google Headquarters
– 10 miles to Yahoo Headquarters

Aug.21.2007 [ Filed under: Silicon Valley News ] Comment Here »

It's not world famous for it's homes or real estate.  Folks outside Silicon Valley know it as the birthplace of the iPhone.  Apple, Symantec, and a very large portion of HP — to name a few — call it home.  To locals, Cupertino is synonymous with the school system.  The Cupertino Union School District has 24 elementary and middle schools, 19 of which are ranked by the California Department of Education as 10 out of 10 statewide. 

And that doesn't account for the elite Monta Vista High School, as well as Lynbrook High School or Homestead High School (as part of the Fremont Union High School District shared with Sunnyvale and other cities) which all rate 10 out of 10 statewide as well.

The real estate in the Cupertino part of Silicon Valley commands a premium over other cities in the area.  The darker lines on the chart show what the median price of condos and townhomes, and single-family homes in Cupertino.  The faded lines show what the median home prices are in Santa Clara County as a whole. 

The difference between the two types of lines is the premium you pay in housing prices to live in Cupertino.  How much is that premium and how has it changed over the last decade?

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Jul.26.2007 [ Filed under: Cupertino, Market Updates ] Comment Here »

It's all about proximity.  This month, I took a look at the semi-annual statistics aggregated for the first-half of the year so that my clients can get a good look at the overall trends, as opposed to the bumps in the road.

The story isn't about the median prices, which are charted further down in this article; what's interesting is the consolidation of pricing power around the center of Silicon Valley.  I alluded to this increase last month, but the half-year figures distinctly highlight this strength, with the epicenter squarely in Mountain View.

In the first-half of 2006, an average single-family home sale would command 101.98% of the list price — about 2% over the asking price — but in the first-half of 2007, that percentage jumped to 104.56%.  The increase in Mountain View's neighbors Palo Alto, Los Altos and Sunnyvale, is less drastic, but still pronounced, as illustrated below. 

In fact, inventory of single-family homes in Mountain View and Los Altos is at its lowest point in ten years, with Mountain View equaling the low it reached in 2005 (lower than any other point since 1998).

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Jul.23.2007 [ Filed under: Market Updates, Silicon Valley News ] 2 Comments »

The stratification of the Silicon Valley residential real estate market continues.  On one end, the average townhome in the city of San Jose is just harder to sell than it was last year and, not surprisingly, it's much harder to sell than the year before.  In fact, San Jose accounts for half of all closed townhome and condo sales in Silicon Valley's Santa Clara County but for three-quarters of the drop in closed sales between May 2006 and 2007.

That decrease in San Jose, from 288 to 204 closed townhome and condominium sales year-over-year, represents the lion's share of the Santa Clara County drop from 481 to 363.  The reason for the drop in San Jose, however, is different than the reason closed sales are dropping or holding steady in other cities around Silicon Valley.

On the other end of the spectrum is what's happening with single-family homes.  Silicon Valley market cycles being what they are, the half of a percent dip ($4,000) in the median price of single-family homes in Santa Clara County from April to May this year was expected, particularly after the large run-up over the past few months.  On average, there's been a one percent dip in single-family home prices in Silicon Valley between April and May over the last ten years. 

But what isn't obvious in home prices is the drop in new single-family home listings from May 2006 to May 2007.  New listings are down across-the-board in every city in Santa Clara County except for Campbell.  Across the entire county, new listings dropped 13.6%, from 2466 to 2130.

The single-family home and multi-interest development markets are behaving very differently.  One stratum presents an opportunity for investors and first-time home buyers who are willing to compromise.  The other is a good indicator of the hot markets in Silicon Valley.

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Jun.09.2007 [ Filed under: Market Updates ] 1 Comment »