This has become desirable for many bay area residents that want to have entertainment, shopping and a social outlet waiting just outside their front door.  Many downtown businesses sense the high demand of residential-retail zoning, which is alluring many business districts to take advantage of this commercial high density epidemic.

The public concern for high density zoning is that it will bring unmanageable traffic and cars and high taxes and noise to the community.  On the flip side, some residents have voiced excitement and acceptance that it will bring money to the city, restaurants and better quality entertainment.  Moreover, it will lead to higher economic activity and productivity, save tax dollars, and increase property value.  As worrisome or exciting as it may be to the community, there is hardly an area untouched by this new wave of high density development; San Jose, Santa Clara, Sunnyvale, Palo Alto, Campbell, Los Gatos and even Willow Glen are all conforming to this new way of life.

An example of high density development that has majority of public acceptance is Sunnyvale Town Center’s new urban development project.  It has been underway for some time but the ultimate outcome will be 991,000 square feet of retail space, 315,000 square feet of office space and 292 ownership housing units.  There will be a 14-screen movie theater and a 200 room hotel located at Murphy and McKinley Avenues.  The 184-acres project encompasses a large block bounded by Mathilda, Washington, Sunnyvale and Iowa Avenues, known as the Town Center Mall.  The shops are planned to start opening in early 2009.  The vision of this new development is for a lively people-friendly place for shopping, working, living and entertainment. 

Sunnyvale residents are actually quite pleased with the new development, as it will bring in revenue for the city, increase visibility to the area, bring in restaurants, and retail and ultimately boost their home values.  Some residents of other neighborhoods are not quite as pleased.

Voices from Willow Glen

I have heard public outcries from the Willow Glen Neighborhood Association (WGNA) when they recently heard the news of the latest high-density development proposal.  The plan is to create a Community Benefit Improvement District (CBID), with “?mixed-used’ buildings along Lincoln Avenue with housing above retail; the project is said to attract better businesses on the avenue, and promote affordable housing. 

There has not been a very positive reception to the idea that the “?beloved’ Lincoln Avenue will potentially lose the charm and character that it has preserved over the years.  The majority of the public is outraged that big developers will come in and modify the old-fashioned downtown area and bring in retail chains and large department stores and push out the “?mom and pop’ businesses, thus destroying the neighborhood.  Another obvious concern of is the excess of cars and traffic that will result.

Lincoln Avenue is the centerpiece for a lot of residents in Willow Glen and to lose the small downtown feel would be tragic for some.  When comparing other high-density developments, the one key element that say Santana Row, Sunnyvale, Campbell and downtown San Jose have is several blocks to develop; Lincoln Avenue is only one long street with single family houses surrounding.  It will be interesting to see what the final outcome will be when business property owners in Willow Glen vote this month for the CBID initiative.

If you have a stance about this new high-density trend in your neighborhood, let your community know how you feel by participating in your local neighborhood association.  Feel empowered to take part in your community and get involved.  High-density building is part of the future; to better embrace this new wave of development, there is a lot of research available online to better educate yourself with this up-and-coming boom.

(c) Sara Greenwood for the Silicon Valley Real Estate Blog, 1SiliconValley.com

Recommended Reading:

• Creating a Better Standard of Living for Your Family
• Santana Row Neighborhood Information
• Consumer Rights When Purchasing New Homes
• Considering One HOA vs. Another

With the exception of the building pictured here, located on Fair Oaks currently leased to Paramount Tumbling and Gymnastics, various new developments have sprung up throughout the area such as City Park and Verona by luxury builder Toll Brothers, Parkside Villas, Tasman, and Crossman Place built by popular local builders Barry Swenson and Palo Alto based Classic Communities. 

One of the very first developers to stake claim to North Sunnyvale is also one of the nation’s largest builders, Pulte Homes, who built their first development Danbury Place of 168 homes in 2004.  Since then, Pulte Homes has been actively buying more land within this small one block radius and since their 2004 debut, has built 30 homes in Danbury III in 2006, 43 homes in Danbury IV in 2007, and 36 homes in Danbury II in 2008 for a total of 277 homes.  

There has been previous negotiations with the owner of the Paramount Tumbler and Gymnastics building that had not resulted in the sale of the property in past.  It sounds like now, the "last man standing" is interested in re-opening talks with various builders including Pulte Homes.  Could we see a Danbury Place V on the horizon?

Pricing for Danbury I homes in 2004 ranged from $590,000 – $630,000.  Today, Danbury Place has only 10 homes (including model homes) remaining scheduled to all be complete by August 2008.  Prices ranging from $728,900 – $834,900.  

We keep our ears close to the ground for the latest real estate news to ensure our clients have the best representation.  After all, new home construction affects the entire real estate market for both buyers and sellers.  For more information on new homes and MLS properties in North Sunnyvale, please contact Alex Wang here at the Silicon Valley Real Estate Blog.

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.

Like Bordeaux France and its rich grape vineyards and wine production, Sunnyvale has been known for its fruit orchards and has had a vital economy of agricultural richness, and for centuries has maintained a reputation for fruit production.  In the mid 1900s a lot of the fruit orchards in Sunnyvale were cleared to make way for new homes and industry in this wonderfully temperate city; new developments began popping up everywhere in the 1950s.  Just this past year, KB’s Bordeaux development broke ground and the first phase of homes are now ready for occupancy.

Bordeaux Sunnyvale’s Location 

The Bordeaux community is located near Reed Avenue and Lawrence Expressway, on Aster Avenue in Sunnyvale .  This area has been rezoned in the past years to Industrial-to-Residential/Planned Development.  Before construction started, this land was home to a many industrial companies that have recently picked up and moved.  The remaining close-by companies include a few other industrial businesses as well as a development of other new homes down the street.  It is an up-and-coming neighborhood has become a very sought after part of Sunnyvale . 

The stats on this new 80-home development include 6 unique floor plans, with prices starting around $565,000.  KB Homes catch phrase is known as “?built to order’ which means that you find the location of your KB home, and essentially customize it to your personal taste and style.  There are many design features and upgrades available and your new home can be built to your own specifications, and is ready and operational on the day that you move in. 

Bordeaux’s Grand Opening took place on March 15^th and the response has been pretty positive.  So far, 5% of the homes are under contract with another 10% reserved.  The types of people interested in this community are 1^st time home buyers, people upgrading from small condos, with the majority of these people being young urban professionals.  The most sought after floor plans are Plan 5 (2 bdrm/2 bth, 1238 square feet) and Plan 9 (3 bdrm/2.5 bth, 1924 square feet).  The least requested floor plan is the Plan 4, which is the smallest unit in the development, featuring only 1056 square feet of living space and a 2-car tandem garage.

Sunnyvale is home to a lot of shops and restaurants and in my opinion has one of the best Farmer’s Market in the Bay Area.  In addition, the major employers include Juniper Networks, Palm, AMD, Yahoo and Maxim.  There is a lot of character to Sunnyvale and if you find yourself driving around town you can see the old modern Eichler homes, a cute downtown with bars, shops and restaurants, the community center which is a wonderful place to bring a good book and people watch, and then there’s Baylands Park which offers recreational pathways and picnic grounds.  There are golf parks and tennis centers “? it is a community filled with activities and lots of things to do.

If you are interested in this new development and would like to be represented by an area specialist of this community, please contact me.  In addition to helping buyers and sellers everyday with resale properties, I enjoy taking clients on tour to the new developments as well.  I cooperate with many local developers in the area, and have experience in the new home buying process.  I help to negotiate in the best interest of my client, and to make the home buying process as smooth and effortless as possible. 

(c) Sara Greenwood for the Silicon Valley Real Estate Blog, 1SiliconValley.com 

Recommended Reading

• Consumer Rights When Purchasing New Homes
• Hidden Factors When Calculating a Home’s Value
• Reasons People Stop Renting and How to Get Started
• Emotions in Real Estate: From Feat to Elation
• Download the Silicon Valley Home Buyers Book

Cumberland joined Silicon Valley’s elite schools with 900 or above API scores this year with its 36 point increase.

As you might expect, homes in Sunnyvale that feed into Cumberland and Cherry Chase are more expensive than those that feed into Sunnyvale schools with lower test scores.  Here are some benchmark 3 bedroom, 2 bathroom homes that closed in the last two months, with their schools and API scores:

	$975,000 – 1144 Lynn Way 3br/2ba; 1272 sqft ($766 per) on 6098 sqft lot; 52 years old Cherry Chase (900) / Sunnyvale Middle (797) / Homestead High (838)
	$890,000 – 214 Clarence Ave. 3br/2ba; 1365 sqft ($652 per) on 5663 sqft lot; 51 years old Cumberland (901) / Sunnyvale Middle (797) / Homestead High (838)
	$766,000 – 426 S. Mary Ave. 3br/2ba; 1552 sqft ($493 per) on 5227 sqft lot; 53 years old Vargas (730) / Sunnyvale Middle (797) / Homestead High (838)
	$715,000 – 750 Carolina Ave. 3br/2ba; 1304 sqft ($548 per) on 6318 sqft lot; 54 years old Bishop (733) / Columbia Middle (712) / Fremont High (709)
	$667,000 – 465 Wilson Ave. 3br/2ba; 1100 sqft ($606 per) on 5227 sqft lot; 57 years old Ellis (816) / Sunnyvale Middle (797) / Fremont High (709)

(I was careful to ensure that the benchmark homes were all comparables — recently remodeled with similar upgrades and of about the same size and age — so the premiums can be ballparked using the per square foot price.  Mary is a main road which may have detracted from its home’s value somewhat.)

As you can see from the benchmark homes, Cherry Chase Elementary and its reputation have been built into real estate values.  Cumberland Elementary doesn’t have that same premium because it has been on the rise, from 845 in 2003.

Another steadily improving school is Ellis Elementary, up from its 773 in 2005 (though slightly below last year’s 822).  It could represent a good deal for young families who plan to upgrade after elementary or middle school.  And people not wanting to pay a premium for schools might consider the other representative homes.

But Sunnyvale Elementary isn’t the only elementary school district in Sunnyvale.  Because of the complexity in the way school district border lines are drawn, students in a large part of Sunnyvale actually attend schools in the Cupertino Union School District.  How much opportunity is there in the overlap?

Sunnyvale Addresses with Cupertino Union and Santa Clara Unified Schools

It’s important not to make assumptions about school locations and homes, particularly because school boundaries don’t follow city lines.  Sunnyvale has three elementary school districts, and the following are 3 bedroom, 2 bath homes that don’t use the namesake school system.  These homes were all closed in the past two months:

	$952,000 – 1053 Gardenia Way 3br/2ba; 1631 sqft ($583 per) on 6200 sqft lot; 37 years old Santa Clara Unified School District Ponderosa (837) / Peterson (845) / Wilcox High (734)
	$913,000 – 821 Duncardine Way 3br/2ba; 1328 sqft ($688 per) on 6534 sqft lot; 46 years old Cupertino Union School District Stocklmeir (945) / Cupertino Middle (899) / Fremont High (709)
	$910,000 – 1679 Nightingale Ave. 3br/2ba; 1432 sqft ($635 per) on 6098 sqft lot; 49 years old Santa Clara Unified School District Laurelwood (883) / Peterson (845) / Wilcox High (734)
	$902,500 – 532 Fern Ridge Ct. 3br/2ba; 1172 sqft ($770 per) on 5778 sqft lot; 39 years old Cupertino Union School District Nimitz (824) / Cupertino Middle (899) / Homestead High (838)

These homes are slightly newer than the ones in the first table and are comparables close enough for a rough comparison by square foot price. 

Nightingale, with Santa Clara Unified’s Laurelwood Elementary as its representative school, comes in at an 18% lower per square foot price than the home on Fern Ridge, in the elite Cupertino Union School District.  Test scores aren’t the full picture of any school, but if the API number is important in your search, this difference is something to consider.

Very near the border of Cupertino and Sunnyvale is Duncardine, which feeds into Stocklmeir Elementary.  Stocklmeir’s test scores are the highest of any elementary school Sunnyvale residents can currently attend, and this particular home is less expensive ($62,000 by absolute measurement and 10% per square foot) than Cherry Chase’s Lynn in the first table — even though it also has an arguably better middle school. 

While the simple comparisons here based mostly on elementary schools and not other tangible or intangible factors that may give value to a home, being able to break out one axis of measurement is often helpful to my clients, especially given so many factors to consider when buying a home.

Recommended Reading:

• What People Think About Before Looking for a Home
• Silicon Valley School System Bang-for-the-Buck
• Investing in the Right Bay Area School District
• Not Overpaying When Buying a Home
• Download the Silicon Valley Home Buyers Book

(c) Steve Leung, Realtor, for the Silicon Valley Real Estate Blog at 1SiliconValley.com

Sunnyvale’s average number of new listings during the month over the last ten years is 105 and it’s an illustration of why real estate is local.  National news headlines from around the country correctly talk about aggregate numbers that are lower because of deflating markets — and many Silicon Valley home owners here who might have considered listing their homes, but could afford to wait, sat out.

But ultimately, real estate is about location, supply, and demand.  And while supplies were down, demand was actually both "normal" and "up".  The ratio of closed transactions to new listings in August 2007 was 73%.  The 10-year average is 74% and it was 58% last year.  How did that increase manifest itself?  Besides a fourth consecutive year of over-asking closing prices in single-family homes, have a look at the difference in the cost of Median Homes year-over-year.

[ Median Home 2007, 2006 | Market Snapshot | How Much Home Can I Get? ]

Median Home 2007 – $930,000

The umbrella wasn’t included in the number, which was $41,000 over the asking.  The Median Home in Sunnyvale is the 3 bedroom, 2 bathroom ranch at 956 Kintyre Way, a 51 year-old home. 

And while it shows in the plain styling of its exterior, the inside was completely remodeled to today’s expectations, with a new appliances in a completely renovated kitchen, hardwood floors, a pair of redone bathrooms, new paint inside and outside, and energy-saving double pane windows.  The lot is 6,572 square feet and comes with underground sprinklers and new landscaping.  All the work and upgrades paid off because the home took 6 days to go.

Compared With Last Year – $865,500

Kintyre’s styling is in complete contrast to one of last year’s Median Homes, the ultra-modern, 20 year-old, 1465 Yukon Drive, which sold for $870,000, 16 days after being re-listed (45-day CDOM).  The listing describes the home as "charming", which I always interpreted as a real estate code-word for "small", but this home is 2,068 square feet on the inside. 

"Charming" might more accurately describe the lot for a home this size, which is 3,920 square feet.  Ratios aside, the claim to fame for this 3 bedroom, 2.5 bathroom — I think you could call it a chalet bungalow — is the Cupertino schools, Nimitz Elementary and Cupertino Middle, plus Fremont Union’s highly-rated Homestead High School.

999 Glenbar Ave. is the other Median Home in Sunnyvale for August 2006.  As a 47 year-old home, Glenbar has a more traditional exterior but a completely modernized interior, with recessed ceiling lights, granite and stainless steel in the updated kitchen, new bathrooms, refinished hardwood floors, and maple vanities. 

Its 1,524 square feet contain 3 bedrooms and 2 bathrooms, but it has a more traditional lot size at 6,098 square feet.  Unlike its fellow Median Home, Glenbar sold for above its $844,888 asking, for a rounder $861,000.  It went in 13 days.

Market Snapshot – September 7, 2007 

There are 114 single-family homes and 72 townhomes and condos listed, for a total of 186 available residential listings.  It’s been generally good news for Sunnyvale, so let’s focus on the homes where things aren’t so good. 

Of the common interest developments, 19 have undergone a reduction and 6 have had their asking price increased.  Here’s a map plotting where the homes that have been reduced are.  As you can see, there’s no single area, but they do share some characteristics.

First, they’re smaller condos, many in the sub-1000 square foot range.  They have an average list price of $484,540 for an average of 1036 square feet.  The smaller condos are sitting because the ability of buyers in this range was largely hurt by the sub-prime implosion, the trend towards requiring higher down payments, and now by jumbo rate increases.

Second — with the exception of the cluster around #10 which is that complex of lower-end condominiums that I mention in the Threats section of my notes on the Expressions of Sunnyvale and Belmont Terrace — the small condos are either on or one block over from a major road east of Mathilda (and further from Mountain View).  Buying near a major road isn’t ideal but it’s really a combination of these two factors that has hurt this set of properties.

Of the 114 available single-family homes, 47 have undergone a reduction, with those 47 having an Active CDOM number of 84.7 days on average.  I was surprised until I pulled up a map.  You can’t tell every person’s situation from there.  Some people might have been too aggressive with their original mark.  Others might be in a bad financial situation.  But there are clusters in Sunnyvale towards and north of the 101.

Same issues here as with condos.  Homes at the lower-end have a shrinking set of buyers; home owners in more affordable portions of the city have a higher probability of being in financial distress. 

Net-net, the amount of "really good" inventory has been relatively low and those sellers have reaped the benefits.  But higher jumbo interest rates are pushing the effective cost of homes higher, so home owners should keep that in mind when listing a home towards or below the median — the minimum bar buyers have to jump over is getting higher. 

Conversely, buyers need to keep in mind there might be less inventory than it seems, particularly above the median.  Buyers will get some relief because of the publicity of the loan implosion and the time of year, but only certain sellers will need to entertain lowball offers.

How Much Home Can I Get in Sunnyvale?

This is an overview of representative properties in Sunnyvale which closed in August 2007.

	$400,000 – 1081 Reed Ave. #A 2br/1ba; 858 sqft; 35 years old; HOA $280 Custom bookcases
	$490,000 – 1271 Poplar Ave. #403 2br/2ba; 1040 sqft; 23 years old; HOA fee unknown 2 master suites
	$531,000 – 880 E. Fremont Ave. #611 2br/2ba; 930 sqft; 2 years old; HOA fee unknown Cupertino schools
	$575,000 – 163 Beemer Ave. (least expensive single-family this month) 1br/1ba; 688 sqft on lot under 4500 sqft; 99 years old Detached garage converted to office; 2nd bed separate from main house
	$589,000 – 983 Belmont Terrace #3 2br/2.5ba; 1483 sqft w/ 720 sqft lot owned; 21 years old; HOA $395 Skylights, new paint See Realtor Notes on Belmont Terrace
	$629,000 – 740 Borregas Ave. 4br/3ba; 1675 sqft on 7200 sqft lot; 50 years old Family room has bathroom and separate entrance; one block from 101
	$695,000 – 998 La Mesa Terrace, Unit E 2br/2.5ba; 2120 sqft; 22 years old; HOA $310 Large bonus room; updated appliances; 2 car garage
	$700,000 – 618 E. McKinley Ave. 3br/1ba; 1391 sqft on 5000 sqft lot; 55 years old Fireplace, kitchen updated to tile, skylights
	$726,000 – 1152 La Rochelle Terrace, Unit B 3br/2.5ba; 1923 sqft w/ 2450 sqft lot owned; 12 years old; HOA $337 Large bonus room, hardwood floors, 2 patios
	$785,000 – 1039 Grape Ave. 3br/1ba; 1066 sqft on 6000 sqft lot; 53 years old Cherry Chase Elementary, converted garage not included in sqft
	$785,000 – 977 Asilomar Terrace #6 3br/2ba; 1895 sqft w/ 2613 sqft lot owned; 15 years old; HOA $384 End unit, large loft; gated community See Realtor Notes on Expressions of Sunnyvale
	$847,000 – 512 S. Sunnyvale Ave. 4br/2ba; 1582 sqft on 6050 sqft lot; 69 years old Remodeled, new carpet, fresh paint; close to downtown
	$859,000 – 400 Ives Terrace (most expensive townhome sold this month) 2br/2.5ba; 1960 sqft w/ 2700 sqft lot owned; 26 years old; HOA $335 End unit; gated community; large deck
	$945,100 – 1336 Flicker Way 3br/2ba; 1407 sqft on 6138 sqft lot; 43 years old Cupertino schools; hardwood floors, granite counters, pool
	$1,050,000 – 1694 Kamsack Dr. 3br/3ba; 1544 sqft on 7405 sqft lot; 46 years old Cupertino schools; refinished hardwood, new paint and landscaping
	$1,190,000 – 838 Trenton Dr. 4br/2ba; 1752 sqft on 8276 sqft lot; 47 years old Cherry Chase, Homestead High; laminate flooring; Eichler
	$1,275,000 – 761 Inverness Way 4br/3ba; 2573 sqft on 6098 sqft lot; 15 years old Cupertino schools; curved staircase, 3 fireplaces
	$1,405,000 – 598 Fort Laramie Dr. 6br/3.5ba; 2855 sqft on 8550 sqft lot; 40 years old Cupertino schools; large pool, wetbar

(c) Steve Leung, Realtor, for the Silicon Valley Real Estate Blog at 1SiliconValley.com

[ Strengths | Weaknesses | Opportunities | Threats ]
[ Recent Transactions | Neighborhood Transactions | Schools | Map ]
[ What's Available in the Area | Other Notes ]

Strengths

1)  Units in the Belmont Terrace complex cost less than the Gardens townhomes to the north and the Expressions townhomes to the south, while still being in the same neighborhood.

2)  A lot of attention goes into the lush greenery around the complex, which sets it apart from many other developments. 

3)  Cannery Park, its open space, and small playground and picnic area are next door.  And high school students in this complex go to Homestead High School which was rated 10 out of 10 statewide by the California Department of Education in 2006.

4)  It’s only a few minutes’ drive from Belmont Terrace to Downtown Mountain View and Downtown Sunnyvale, in addition to 101, 85, 237, 280 and Central Expressway.  The Caltrain Station in Downtown Sunnyvale is about one mile away. 

Weaknesses

1)  The Belmont Terrace HOA fees are slightly more expensive than those for the Gardens and Expressions complexes, even though the square footage per unit is generally smaller.

2)  Many units have a narrow feel to them on the inside, particularly where fireplaces and their flues protrude from the walls.

3)  Patios, typically located outside the front entrances, are more like throwbacks to old-style porches where people might gather and watch the neighbors.  The ones at Belmont Terrace don’t offer any privacy.

Opportunities

1)  The cost of townhomes is in the lower mid-range of the homes in this area.  From a real estate standpoint, I generally prefer homes that aren’t the most or least expensive in the area because they don’t encounter as much resistance going up and don’t face the same possibility of erosion at the low end.

2)  Successful redevelopment of Downtown Sunnyvale, only a mile away, will increase the demand for and number of local destinations from the Expressions of Sunnyvale complex.

3)  In 2007, Sunnyvale was rated the second safest city in California.  According to the private research firm Morgan Quinto, Sunnyvale ranked in the top 25 safest cities across the U.S. from 2000 to 2006.  315 cities were included in the report.

Threats

1)  If HOA costs increase, they’ll be considered very expensive relative to neighboring complexes and the services provided. 

2)  Several low-end condominiums in a complex one block down and one block over on California Ave. are still on market after several months.  Those one bathroom condos are the lowest cost homes in the area and don’t directly compete with Belmont Terrace, but that complex is likely to see some erosion in pricing. 

3)  Downtown Sunnyvale redevelopment hit a snag after discovery that some water cleanup will be needed.  Water issues and such aren’t new to Silicon Valley, where they’re actually pretty common.  But it’s not news residents want to hear.

Recent Transactions

Address	Bed	Bath	Sq.Ft.	Close	Sale Price	HOA
983 Belmont Terrace #3	2	2.5	1483	8/31/07	$589,000	$395
979 Belmont Terrace #3	3	3	1363	8/15/07	$580,000	$395
999 Belmont Terrace #4	2	2.5	1405	7/27/07	$638,000	no info
972 Belmont Terrace #7	2	2.5	1329	6/19/07	$590,000	$395
999 Belmont Terrace #8	3	3	1348	3/30/07	$600,000	$395
980 Belmont Terrace #8	2	2.5	1405	3/29/07	$607,000	$395
Contact me for pictures and upgrade information

Neighborhood Recent Transactions

Schools and School District Information for Belmont Terrace

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 (Sunnyvale School District, Fremont Union High School District) for the latest information.

1)  Vargas Elementary School (see ratings and parent opinions).  California Distinguished School.

2)  Sunnyvale Middle School (see ratings and parent opinions).  National Blue Ribbon School.

3)  Homestead High School (see ratings and parent opinions).  Rated 10 out of 10 statewide by California Department of Education in 2006.

Map

View Larger Map

(c) Steve Leung for the Silicon Valley Real Estate Blog at 1SiliconValley.com

Recommended Reading:

• Download the Silicon Valley Home Buyers Book
• Considering One HOA Versus Another
• How to Stop Renting
• Preparing Your Finances for Buying a Home
• Choosing the Right Location for You
• The Thought Process Behind Making an Offer on a Home

I thought it was interesting that those folks in the 9% difference didn't like where they were living all that much, but still liked Sunnyvale as a whole.  (Usually people who don't like one prefer their neighborhoods over city itself.)

That satisfaction rating puts Sunnyvale in the 81st percentile nationwide.  Not bad.  People didn't think highly of the city as a place to retire (26th percentile) or — shockingly — as a place with access to "affordable quality housing" (24th percentile).  It is the "Heart of Silicon Valley" after all.

But where Sunnyvale excelled in the survey was in "openness and acceptance towards people of diverse backgrounds" (95th percentile), "quality of police services" (93rd percentile), and value for tax money spent (94th percentile).

Two townhomes recently went pending at the Expressions of Sunnyvale, one on Asilomar Terrace (closing August 31) and one on Alpine Terrace (closing August 27). 

View my complete notes on the Expressions of Sunnyvale neighborhood, or jump directly to its:

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

Bolstered by the recent success of the Vallco Mall re-branding to Cupertino Square, the downtown Sunnyvale project includes the creation of a "Redwood Square" which features the six stalwart redwood trees whose preservation is a critical component of the new revitalization. 

The complete redevelopment area includes (basically) the area enclosed by Mathilda, El Camino Real, Carroll, and Evelyn.  Macy's and Target will remain open during the process, and a new single-story Target built above a parking structure is planned to replace the current double-decker Target.  No word yet on what kids in the store will do for fun without the shopping cart escalator.

But for people looking for their own freestanding single-family home with a nice backyard and a safe neighborhood, the numbers say there's another opportunity to be had, in Cupertino's neighboring city, Sunnyvale.

From 2000 to 2006, Sunnyvale ranked in the top 25 overall safest cities (out of 315) in America according to the private research firm Morgan Quinto.  No other city in Silicon Valley can claim that distinction (though it's also interesting to note that San Jose consistently places in the top 10 safest cities with a population of 500,000 or more.)

The challenge with Sunnyvale is that it doesn't have the hipness factor of Mountain View or the education credentials of Cupertino (even though their school districts overlap in many places). 

What it does have, though, is a first in the last decade: a year-over-year price drop that brings Sunnyvale homes in line with the Santa Clara County average.  That means no price premium to live in a Silicon Valley city that's consistently rated as one of the safest in America.

It's Hip to Be Square 

Truthfully, if you're looking for someplace trendy, Sunnyvale isn't it.  That's one reason why it's less expensive than neighboring cities.  Sunnyvale's downtown area has the Murphy Avenue row of restaurants, bars and clubs plus the Town & Country Village with its specialty shops — and there are some good restaurants in downtown Sunnyvale like Dish Dash and Thai Basil. 

Given the choice between downtown Mountain View and downtown Sunnyvale, most folks go to Mountain View.

Fortunately, Sunnyvale is only three miles from downtown Mountain View without the skyrocketing prices and tight inventory of that area, so living close to — but not in — a trendy area is affordable.  (You can find details on the market in downtown Mountain View by reading my Silicon Valley Housing Market Update – April 2007.)

Sunnyvale Townhome and Condo Prices and Premiums Up

Common interest developments in Sunnyvale have traditionally been a good value because you can get a lot of square footage at a reasonable price. 

But with a year over year increase in median price from $530,000 to $590,000 in March 2007 (an 11% jump), they don't represent the steal they were last year or in 2003, as evidenced by the higher price premium relative to the Santa Clara County average for townhomes and condos.

That said, they're still tracking pretty close to the overall median and while prices aren't bargain basement, they're not unreasonable for Silicon Valley 2007 standards.

There are a couple low-end ($400-500K range) complexes in Sunnyvale where you can't walk thirty paces without hitting "another" for sale sign so, if you made me promise to guess, I'd say that the median price for condos will dip — but that doesn't mean there's overall weakness in mid-range and above properties.

The Value Play in Sunnyvale Single-Family Homes

That's a curve we haven't seen in Sunnyvale.  The dip below the Santa Clara County median line for single-family homes.  In fact, the Sunnyvale price is 2% below that media line this year and the first thing I thought about for my clients was "value play."

The thing about Sunnyvale is that, besides the phase one work on Moffett Towers by Jay Paul Co., the city hasn't gotten any of the buzz from the giant companies located around it in Mountain View (you know who you are) and Cupertino (with HP's mega-complex, Symantec corporate and Apple's current and planned world headquarters campus).

Sunnyvale is literally ten minutes from all of that, and it counts Juniper and Yahoo among its corporate residents.

So for my clients who are tech professionals looking to cut their commute costs (see the bottom of my article Determining Your Must-Haves When Buying a Home) and get a good deal on a single-family home — today — I search for houses in Sunnyvale.  Sunnyvale has many reasons why it isn't average, and at a -2% premium, now you don't have to pay for them.

(c) Steve Leung for the Silicon Valley Real Estate Blog at 1SiliconValley.com

[The raw data about area home prices is supplied by the local MLS, RE InfoLink.  The analysis is my proprietary work.]

Recommended Reading:

• Silicon Valley Housing Market and Home Price Information
• Determining Your Must-Haves When Buying a Home
• Why the Perfect House Wasn't So Perfect
• Silicon Valley Home Buyers Guide
• Emotions in Real Estate: From Fear to Elation

The California Department of Education (CDE) just released the recipients of its California Distinguished Schools award, which honors the "exemplary and inspiring" schools across the state. 

Typically only 5% of schools are awarded with the California Distinguished School title, which schools are allowed to use for four years — and in 2007, there were 21 Silicon Valley schools (11 from San Mateo County and 10 from Santa Clara County) that received the honor. 

Elementary and secondary schools are evaluated in alternating years and, this year, it was time for the middle and high schools to go under the microscope.

As frequent readers here know, I'm a big advocate of not only looking at real estate in established educational powerhouses, but also finding up-and-coming schools.  After all, schools power real estate demand — even if you don't have kids — and people looking for the "next big thing" in terms of appreciation need to look beyond what's already been priced into the market.

There were some big winners this year in Silicon Valley and this article kicks off a week of market analysis homing in on key cities in these school districts.  Here's a whirlwind tour.

Fremont Union High School District (South Bay)

Fremont Union primarily covers the Silicon Valley staples, Cupertino and Sunnyvale, but also includes areas of other Santa Clara County cities including Los Altos, Saratoga, and San Jose.

Three of Fremont Union's five high schools received the California Distinguished School award this year.  Monta Vista High School and Lynbrook High have both amassed five of the awards, while fellow 2007 winner, Cupertino High, has been named a California Distinguished School three times.

The Fremont Union High School District web site has a PDF map that shows the areas each school in the district covers. 

Sequoia Union High School District (Peninsula)

Sequoia Union covers a wide stretch of Silicon Valley and the Peninsula, serving the San Mateo County cities of Atherton, Belmont, East Palo Alto, Menlo Park, Portola Valley, Redwood City, San Carlos, and Woodside.

Three of Sequoia Union's four comprehensive education high schools (Sequoia Union has one vocational high school) won this year.  And of the award winners, both Sequoia High School and Menlo-Atherton High School have won the award twice, while Carlmont High School has won the award three times.

The Sequoia Union High School District web site has a handy tool that lets you check what school any given address in the district feeds into. 

Up-and-Coming Schools

The Campbell Union High School District has two up-and-coming schools that are brand new winners this year, Del Mar and Branham High. 

And, further north in the San Mateo Union School District are two more first-time winners, Burlingame High and Hillsdale High.

I'll post the latest home values in the 1SiliconValley.com Housing Market section.

(c) Steve Leung for the Silicon Valley Real Estate Blog at 1SiliconValley.com

Recommended Reading:

• Silicon Valley School System Bang-for-the-Buck
• Silicon Valley Housing Market Information
• Not Overpaying When Buying a Home
• How a Win-Win Saved My Client $25,000