A few days ago I read the article below in the San Jose Mercury News, penned by Vivek Ranadivé, on the topic of discrimination in Silicon Valley. I loved his striking analogy to Florence, Italy, during the Renaissance – a place where I studied in college – and thought that this piece had a lot of merit. The one caveat, though, is that in my experience there is certainly a very pronounced, impossible to miss age discrimination in Silicon Valley among the high tech companies. Anyone more than 50 or 55 years old may feel that his or her job may be cut at any time and handed to a younger, less expensive employee. Once this last holdout of bias is gone, then perhaps the correlation with exquisite Florence will be exact. The article below is republished with permission. – MPH
Discrimination in Silicon Valley is a Myth, by Vivek Ranadivé
Lately, I’ve been hearing criticism about diversity in Silicon Valley that deeply saddens me. Some people seem to think that gender and race discrimination in the Valley are still roadblocks to career advancement, preventing some people from pursuing opportunities given to others.
I disagree with this completely.
It’s no secret why scores of foreigners flock to Silicon Valley each year. It’s home to some of the best universities, some of the world’s most innovative companies and some of the brightest minds in history. It’s a region that prides itself on disrupting the status quo and pushing the envelope.
What I’ve witnessed in my 30 years in the valley contrasts starkly with recent criticisms.
Since day one, it has welcomed me, and many other Indians, with open arms. And not just Indians — any ethnic group willing to pour their hearts and minds into developing the “next big thing.” Take a walk through the hallways of any business in Silicon Valley and you’re likely to witness a melting pot of young intellectuals from every corner of the world. Silicon Valley not only embraces ethnic diversity, it highly encourages it. That’s what has made this region so successful.
I like to compare Silicon Valley to Florence during the Renaissance. Led by some of history’s brightest and most progressive minds, Florence was the world’s epicenter for art, music, politics and technology. If you wanted to make a name for yourself in the early Renaissance, Florence was where you had to be. The parallels to Silicon Valley are clear — from the Traitorous Eight to the late Steve Jobs to the Google and Facebook guys, so many of the most innovative and intelligent people of the past half-decade have lived and flourished here. As a result, the valley continues to attract the best and brightest from all over the world. Continue reading
Is it a good idea for newcomers to Silicon Valley to rent for a year, or smarter for them to purchase right away? Normally, I would suggest deciding where you want to live generally (example, Almaden area of San Jose 95120) and renting there for a bit first just to make sure it’s where you want to be. This is especially true if you have children who will be in public schools, as it can be rough on them if they change again once you’ve been here for awhile. Renting first enables you to learn the area and takes some pressure off. Also, it can take some time to move money from overseas for your down payment, so the little extra time can help there, too.
However, many people want to buy immediately and will make several trips here before the move to find and purchase a home. Often this is because they see the value in owning (tax benefits, getting kids into certain schools). I’ve had many people tell me that it helps them to establish themselves in their new community faster if they buy rather than rent.
Right now interest rates are very favorable. Lawrence Yue, the chief economist for the National Association of Realtors, recently stated at our annual conference in San Francisco that he’s expecting interest rates to go as high as 5.4% by the end of 2014 (as of right now, it’s hovering between 4.125 and 4.25%).
What does this rise in interest rates mean in terms of housing affordability?
$500,000 mortgage, 30 year fixed at 4.25% = monthly payment of $2459
$500,000 mortgage, 30 year fixed at 5.4% = monthly payment of $2807
Difference = $348, or a 14% increase in the monthly payment
Or, let’s look at it in terms of buying power.
$2500 mortgage payment, 30 year term at 4.25% = loan amount of $508,192
$2500 mortgage payment, 30 year term at 5.4% = loan amount of $445,211
If the interest rate goes up to the 5.4% that the NAR chief economist expects, that cuts into the buying power of a $2500 payment to the tune of almost $63,000.
For most people, the cost of waiting is a significant factor in this buy vs rent decision. My concern is that many people who elect to lease or rent for a year do not understand the risk that may accompany waiting. For most folks relocating to the San Jose or Peninsula area, the hardest thing to manage is the cost of housing. This could become substantially worse by putting off the purchase for a year, so right now I cannot recommend doing that. The low interest rates are a gift that won’t be around forever.
Want more info? Please see my Valley of Heart’s Delight blog, with the related article
How will rising interest rates impact your home buying power?
It can be really challenging for people moving to Silicon Valley to get a sense of pricing for home buying. So to compare “apples to apples”, let’s take a hypothetical case of a 4 bedroom, 2 bath home of approximately 2,000 SF house (appx 185 square meters) and see how the cost looks in one are versus another.
Tonight I compared several areas and cities using the same formula: homes of 1800 – 2200 SF, 3-5 bedrooms, 2-3 bathrooms, on lot sizes of 6000 SF to 10,000 SF. Here’s how it shakes out in the “west valley areas” along the Highway 85 corridor. What areas are most affordable? One way of analysing this is the “price per square foot” figure. How competitive is it? Have a look at the DOM or “Days on Market” figure. All of these days on market are short, but they range from low to heart-skippingly fast.
In most cases, the most expensive and desirable places have either the best schools or shortest commute location. Had I ranked these for school scores, you’d find that Cambrian is fairly high up and a good “bang for the buck” location – though not a super short commute for folks who work in Mountain View (though not so bad for people working in Cupertino). None of these is especially close to North San Jose (Cisco). Continue reading
If you are new to Silicon Valley, you may wonder what the customs are around Halloween, which is always October 31st. It’s pretty simple. Kids get to dress up in costumes and go door-to-door in residential areas (houses, usually, but also condos, townhouses and apartments) and say “Trick or Treat” and receive the treat, which normally is candy.
People in homes are expected to have candy of some sort to give away if they have their lights on, a jack-o-lantern burning or any Halloween decor. If the house is dark or unlit, it should be skipped. Most houses will have a jack-o-lantern, meaning a carved pumpkin with a candlelight (or something similar) in it.
In some areas, such as the Almond Grove area of Los Gatos, homes may get as many as 200 kids in an evening! In other areas, where homes are spread out or for some other reason it’s not so popular, there may be 20 or less.
Finally, parents should accompany children as they go door to door. Candy is not given to adults – it is tacky for grownups to come with a bag or even in costume to collect sweets. Don’t do it, you’ll appear greedy and uncouth. It is also uncool for trick or treaters to expect candy if not in costume.
Have fun and be safe!
Snow sports are very popular with Californians, whether it’s downhill skiing, cross country, snowboarding or snowmobiling. If you move to Silicon Valley, or anywhere in the San Francisco Bay Area, where is the nearest ski resort? The closest sites are all in northern California, of course – but there are more in SoCal, so if your travels bring you closer to LA or Palm Springs, you will want to research southern California ski resorts.
The shortest travel time for snow boarding, skiing and cross country seems to be Bear Valley, which is about 3 hours east of San Jose and Santa Clara County. Not bad!
A more popular area, though, is a little further: Lake Tahoe. This spectacularly scenic area straddles the states of California and Nevada and people speak generally of “north shore” and “south shore” Tahoe. The resorts are spread around the region and include spots at Truckee and Donner as well as closer to the water. There are 15 resorts in all! Some have higher elevations (such as Mt. Rose), so they will be open later into spring than those closer to the lake. If you want to gamble and see shows, you will likely find yourself drawn to either Reno or South Shore, since they are in Nevada and casinos abound. Some of these resorts have shared season passes (such as Squaw and Alpine). A good site which gives and overview of each one is: http://www.onthesnow.com/lake-tahoe/ski-resorts.html This tends to be about a four to five hour drive unless there’s terrible traffic, an accident, bad weather – in which case, it can be many times as long a drive.
Yet another beautiful place to ski is Yosemite Valley’s Badger Pass. Yosemite, like Lake Tahoe, is a beautiful place to visit year round. (For Tahoe, winter and summer are strong tourist months, and there are often great deals on hotels in the “in between” seasons – between skiing and golf or hiking.)
How long is the ski season in northern California? The weather varies from year to year but often snow skiing season begins in November and finishes in March, but it all depends on the snow levels and temps.
It’s not too soon to begin planning your snow adventures! Have a great season!
Comparing real estate market conditions in Almaden, Los Gatos, Saratoga, Cupertino, Sunnyvale and Los Altos
For people relocating to Silicon Valley, often there’s not just one city, town or area which seems like a good fit. Sometimes it may come down to what your money can buy or how difficult it is to purchase in one area versus another. This is frequently the case with the “West Valley” areas where schools are good and the neighborhoods are tidy.
There are two statistics which are especially helpful in understanding the Santa Clara County real estate market. One is the “days on market” or DOM. The shorter this is, the hotter the market – and the harder it is to purchase. The second is the sale price to list price ratio, which hints at the existence of multiple offers, overbids, and buyers giving away all of their rights.
Today, then, we’ll have a look at these, starting with Almaden, the southernmost area, and working our way north along the coastal range. The charts below are all for single family homes (houses and duet homes, not condos or townhomes).
Almaden Valley is a district within the city of San Jose. Its boundaries roughly follow the 95120 zip code, though there are some parts of nearby zip codes which somewhat overlap into Almaden too. How’s the Almaden market? Red hot! Days on market is crazy low – a mere 16! And the average sale price is almost 104% of list price…and rising!
Almaden Valley, San Jose, 95120 days on market and sale price to list price ratio
In many areas of the U.S., real estate agents actively work the rental market. In those areas, owners are willing to pay a commission for the service, and houses and condos are listed in the local multiple listing service.
Not in Silicon Valley, though. Instead, it’s a land of “for rent by owner”. A few properties may be on the MLS (see link below), but hardly any. Far less than 5%.