Median California Home Price in February

The median California price fell to $373,000 during February 2008, almost $100,000 down from $472,000 in February 2007. In the same time people who wish to buy a home in Cupertino School District should consider that cheapest house one market today is one bedroom, one bathroom condo in Cupertino Montebello complex at 20488 Stevens Creek blvd. The asking price what this small condo is $449,900 plus $308 HOA fee every month.

Cupertino Square Shopping Center

The beer is coming to Cupertino Square, Hofbräu Beer Hall – 400 seat beer hall and restaurant like in Munich. Cupertino Square developers are trying to capitalize on Cupertino's rich population, which the city said has an average household income of more than $150,000. Unfortunately for developers Cupertino residents don't behave like typical affluent customers. This is a very family oriented community and the expensive housing sucks up most of their earned incomes. I'm not surprised the ice skating rink, AMC Cupertino Square 16, and Strike Cupertino bowling alley are doing well. I suspect Target is the most successful retail establishment in the area. If they really want to make a killing, they should go after more discount retailers and businesses that appeal to families, for example Costco. There is a market for people going out for after work drinks like Outback Steakhouse, Elephant Bar Restaurant and BJ's Restaurant & Brewhouse, but I doubt enough of those after-work drinkers will go to the Hofbräu Beer Hall in Cupertino Square to keep it in business.

Stevens Canyon Villas Cupertino

15 town homes of Stevens Canyon Villas by Rockwell Homes located on east side of Stevens Canyon road between St. Andrews avenue and Riverside drive in the Monta Vista area of Cupertino. The neighborhoods schools are Stevens Creek Elementary, John F. Kennedy Middle, and Monta Vista High. The average selling price for newly build town home surprisingly low for Cupertino is just a tad more $1M plus very low $205 HOA fee.

Video:



Map:


View Larger Map

Montebello condos sold out

Today I took the picture of the for sale signs, actually just one for hanging, in the front of Cupertino Montebello condos. Compare today’s picture with the picture of the same spot taken for the cashing in Montebello condos post made 10 months ago. Definatelly real estate agents did a great job last year by selling almost everything. Although I surprised at little bit only one condo for sale from 425 condos, but even local Multiple Listing Service return just two more properties available at 20488 Stevens Creek blvd.

Cupertino renting

I just noticed on craigslist.com that someone is renting condos in brand new Villagio and Metropolitan complexes. Renting 2 bedrooms and 2 bathrooms would cost $2095 in Villagio and $2250 in Metropolitan. I was a little bit surprise on the prices, because Villagio schools - Eaton Elementary (API score - 955), Lawson middle (API 958) is much better and located much closer to community than Metropolitan ones - Sedgwick Elementary school (API 876), Hyde middle school (API 828). Perhaps location of Cupertino High school and newly opened "AMC Cupertino Square 16" in one step from Metropolitan condos raises the rent price.

Update:
Mike asking in comments:

I wonder how can they cover the mortgage by renting 2 bedroom for only $2100 at Villagio since 2bed selling price at Villagio is more than $600,000. How much downpay they have to make?

The median sales price for two-bedroom condo units in Metropolitan (19503 Stevens Creek Blvd, Cupertino) community is $600,000. The similar unit in Villagio (20500 Town Center Lane, Cupertino) is a tad pricier - $650,000. The condo owner need to put as down payment at least $300,000 to cover interest only mortgage and HOA fees (Villagio - $410, Metropolitan - $350) , but still it would take a few year to get positive cash flow.

Tantau Development sold to Apple

Apple has bought nine acres in Cupertino from Pacific Resources Development company.
The company had planned to build 125 townhouses between Pruneridge Avenue and Interstate 280 on 10300, 10400 and 10501 North Tantau Ave, but suddenly withdrew the application in February. Apple also owns a 50-acre parcel on the other side of North Tantau Avenue where it is expected to build a campus for up to 3,500 of its employees who currently work in buildings spread around the city.

Tantau Development

Last month Pacific Resources Inc. drops building plan and withdrawal application to build 125 single-family attached residential units on North Tantau Avenue north of Interstate 280 near new Apple campus in Cupertino and sold the land to unknown buyer (I suspect that unknow buyer is Apple).



Pacific Resources, a San Francisco based, real estate company, acquired Hewlett-Packard's building complex at 10300, 10400 and 10501 North Tantau Ave in Cupertino, as part of a larger rejuvenation in the area around the Cupertino Square (former Vallco) shopping center two year ago for $25 million. Initially the company planned to upgrade buildings and surrounding landscape and lease them as offices, but later decided to demolish properties and construct 125 townhouses plus small public park.

Adobe Terrace Cupertino

The Google's server farm still returns information about authentic Mexican food restaurant Adobe Inn in Cupertino, but back then in 2005 city council approved Pinn Brothers construction of Adobe Terrace condominiums located at 20128 Stevens Creek Boulevard. The complex scheduled to completion in the late spring of 2006 would have 2,395 square feet of retail space and 23 residential units.

The building nicely situated on the south side of Steven Creek Boulevard between Torre Avenue and South Blaney Avenue. I don't know how many of you lived not far from fire station, but Santa Clara County Fire Department operates fire depot just in direct view from condominium. Definitely the insurance companies would love such location, but think about going to bed when a fire engine roared by with its siren turned on warning people to get out.

The west and south sides of Adobe Terrace facing to the two residential complexes: 106 units Podium apartments (10100 Torre Avenue) and 155 units Biltmore Apartments (10159 South Blaney Avenue). The headquarter of Infoloan mortgage finance company and office of Chicago title company specialized in escrow, appraisals, and title insurance service located to the north and just after them a happy condo owner may walk to Chili's Restaurant, which is actually full almost every day.

The builder didn't advertise Adobe Terrace prices yet, but as usual with the homes located within Cupertino and Fremont school districts these properties attract a premium. The school premium may still be worth paying because condo prices there are more likely to remain robust, condos are likely to sell quicker, and the good schools attract a good folks. The kids will go to Eaton Elementary, Lawson Middle and Cupertino High schools. It is very important that all three schools located within walking distance from condominium, because the Cupertino Union School District does not offer home to school transportation for students enrolled in the regular elementary and middle school program.

Information center address - 19949 Stevens Creek Blvd, Cupertino, CA 95014

Oak Park Village Cupertino

Not long ago the Santa Barbara Grill was owned by Cupertino residents and now Pinn Brothers builds 46 units Oak Park condominiums at 10745 N. De Anza Boulevard in Cupertino. The initial plans to construct a 120 rooms hotel were rejected after management of the nearby Cupertino Inn hotel asked city council to reject the proposals, arguing that a new hotel would hurt their businesses in the city.

The Oak Park condos are so close to a busy highway 280 and there would be a lot of road noise. Of course some windows are superior at screening out noise, according to their makers, but potential home buyer need to check if condo has double glazed thermal windows (two panes of glass) and it might help a little to add a third layer of glass or plastic in the form of inside or outside storm windows, but what would HOA (home owners association) say.

On the short video below you can listen the noise level near Oak Park condos :




The only bait for the buyer is the high ranking Cupertino public schools. According to attendance area boundaries, students will go to Garden Gate Elementary, Lawson Middle and Monta Vista High schools (The Monta Vista as the 57th best high school in the United States, the 4th highest academically performing high school in all of California). By the way only because of school rating in Cupertino the median home price climbed to almost $970,000 this year and would continue to climb despite home sales dropped everywhere.

Information center address - 19949 Stevens Creek Blvd, Cupertino, CA 95014

Metropolitan Cupertino

Last month the commercial real estate company Menlo Equities started to sell condos in Metropolitan condominium on 19503 Stevens Creek Boulevard in Cupertino. Today, despite the first fall rain in Bay Area, there were plenty of cars parked in front of sales office. The Metropolitan Cupertino conveniently located within walking distance to Vallco Fashion Park and almost completed Cupertino AMC Theaters. The 7.74 acre parcel includes two existing commercial buildings. The condominium includes two mixed-use buildings with 6,386 SF of retail space and 107 residential units. The parking is located below building. Amenities include a small pool (5ft deep) and children's play areas.

The condos priced as following one bedroom from $500K, two bedrooms from $600K and three bedrooms from $700K. The HOA (Homeowners Association Fees) set as $320-$350 per month. I would expect that HOA would cover hot water, but every condo has own water heater, so add a little bit to homeowner expenses.

As you see from the picture above there is the huge parking lot on the east side of complex. The Vallco shopping center has the plan to build instead the six level parking structure with 1154 stall and some retail building, but no building permits were issued yet. In April of 2006 Apple company announced that iPhone inventor bought 50 acres parcel in Cupertino using third party real estate agent and will build new offices for as many as 3,500 employees, look at the possible traffic issues for condo owners.

According to Cupertino Union School District and Fremont Union High School District the home address of Metropolitan Cupertino assigned to the following schools: Sedgwick Elementary school (API 876), Hyde middle school (API 828) and Cupertino high school (API 834).

Cashing in Montebello condos

Almost two years ago someone wrote in local "Cupertino Courier" newspaper about Verona apartments conversion that

"At the former Verona apartments, now condos, the least expensive one-bedroom unit in the back facing the wall of the adjacent building is $400,000. One could rent a luxury apartment at $3000 a month for 133 years for that amount. A buyer who puts $50,000 down and borrows $350,000 has monthly payments of about $2500, including taxes and condo fees.

Over the first five years little of this goes into equity. The same buyer could rent an apartment at Glenbrook with gardens, exercise facilities, etc. for $1000 a month and put the other $1500 in savings. After five years, the individual has saved $90,000 and if invested even at a modest 5 percent, accumulated a $115,000 nest egg"

Let us see what we have after two year of paying mortgage for condo. As I already mentioned in article about Villagio in Cupertino the Montebello Cupertino condo complex was initially constructed as 425 units Verona apartments between 2003 and 2004. The apartment complex was almost immediately converted to condo complex by builder and owner Prometheus Real Estate Company.

Let's compare renter and mortgage payer. One started to rent one bedroom in Glenbrook apartment and second bought one bedroom condo for $400,000 in converted Verona apartments two year ago in the summer of 2004.

Renting:
Rent is $1,400 per month (one bedroom unit)

Buying with 20% down payment:
Interest: $1066 per month with 4% interest only mortgage
HOA fee: $307 per month
Property tax: $0 (actually it would be $400, but the tax deduction would cover property taxes due to homeowner ability to submit estimate tax return)

After two year renter lost $33,600 and home owner lost only 32,925. The one bedroom condo in Montebello Cupertino costs around $475,000 today. It means the lucky condo owner would get around $60,000 after selling and as result we have renter who lost $33,600 and buyer who earned almost $30,000 for the same time. The condos may be a reasonable investment for those who can afford them and renting is almost always loss in Cupertino. Recently I took a picture in front of condos and you can see how many wise condo owners started to get hefty profit after paying mortgage for two years.

Sterling Square in Cupertino

The Sterling Square also know as Civic Park townhouse development by Taylor Woodrow Homes located just a few yards from Villagio development by Silverstone Communities company and across the street from Santa Clara county public library and Civic plaza. It's not entirely clear why Cupertino planning commission and town council decided to split the development of residential property on this land parcel among two home builders, but as a result the city would get two separated condo and townhouse complexes. Probably in case of single construction company the development would have relatively more unified style and would allow to have nice perks for example the pool or reduced HOA fee for future residents of Villagio and Sterling Square in Civic Park.

As all land in Santa Clara county, the construction site was traditionally used for agricultural functions as an apricot orchard prior to its development with medical offices forty years ago. The noise levels are much higher along De Anza Boulevard, and so homeowners in Sterling Square would be not affected by 37,000 vehicles passing development every day. Probably some buzz from walking and driving traffic expected on the west side of the property facing Cupertino public library during library work hours, but for some weird reasons the first sing "SOLD" appeared exactly on the part facing library. If I would home buyer one of the 51 townhouses in this community I prefer southern side of the complex facing newly constructed open space area with fountains. Of course in this case homeowner would lose the view of the green mountains, but at least it would be silence and Californian sun would not raise the room’s temperature to the greenhouse levels.

The development priced by Taylor Woodrow from $914K (for 3 bedrooms and 2.5 bathrooms townhouse) to $1,039K for (for 4 bedrooms and 3.5 bathrooms townhouse) and all units goes with own 2 car garage and plenty of stairways, basically it doesn’t matter, but imagine that you have walk those three levels every day up and down, up and down. The prices are reasonable for Cupertino real estate, where median home price of single family house was priced around $1,200,000 in 2006. According to recent sales for the same money in Cupertino you can buy only forty or fifty year old small house, but in one level. The HOA (home owners association) fee is $300 per month in the addition to the mortgage payment.

The Sterling Square townhouses are within the Cupertino Elementary School District and the Fremont Union High School District. Based on proximity to the complex location, students generated by the development would attend the same schools as student from previously described Villagio namely Eaton Elementary School, Lawson Middle School, and Cupertino High School.

As mentioned before the community located almost on De Anza Boulevard and it gives opportunity to reach highways 85 and 280 in a just a few minutes and usually during morning commute time the traffic exists only on highway 85 from Cupertino to Mountain View. The Albertsons store located almost in walking distance (not sure have many would walk) and the same applies to the following department stores Mervin’s and Targer and food stores like chinese Marina Food and organic Whole Foods.

Villagio in Cupertino

The Villagio condo-townhouse building is the rival of Sterling Square townhouses and both complexes located in the downtown of Cupertino adjusted to each other. The complex's builder Silverstone Communities firm prefers code name "homes" for all complex residences, but the building has four stores and not all unites have a garage, so I would say that condo or townhouse are more fair names for eighty community units. The exact numbers are sixty eight condos and twelve townhouses.

The good news that Villagio is not as apartment conversion projects, but the brand new condo development based on rezoned and demolished structure. In addition to residential the building has five retail spaces on the ground level on street side. From the same side happy homeowners may enjoy mountain views and charming six lines De Anza Boulevard.

The expected price for Villagio in Cupertino starts from $550,000 per one bedroom unit and the price of three bedroom townhouse with attached two cars garage without a doubt would be almost equal to median price for single-family homes in Santa Clara County ($760,000 in March 2006). It seems very expensive for inexperienced home buyer who wants to buy something in attendance area of award winning Cupertino School District, but asked price on the second hand market for one bedroom condo is around $515,000 in the nearest three years old Montebello Cupertino condo complex. As far as I know the Montebello Cupertino was constructed as Verona apartments and later converted by owner Prometheus Real Estate company almost immediately after building structure and I would say that location of Villagio is much, much better, although complex would not have a pool. The HOA (homeowners association fees) equals $410 per month and not tax deductible as usual.

As usual about education, the kids will go to the following schools: Eaton Elementary (API score - 955), Lawson middle (API 958) and for high school students Cupertino High (API 812). All of them located within walking distance from condos, but one probably would need a bike to go to Cupertino High school. May be you do not have any kids right now and not going to have them for some time, but think how other people do care about kids and how it would affect resale value of your real estate property.

The one of the last thing I would like to say about complex is, why do Silverstone Communities named condo complex as Villagio with one "g"? The correct Italian spelling of this word is Villaggio and it sound and looks more adorable for the city with almost Italian name.