Friday, March 24, 2006

Real estate and API scores

Each spring California Department of Education features Academic Performance Index scores from annual school testing. Possible API scores range from a low of 200 to a top score of 1000 and California has set a statewide target of 800 for all schools. The API score in not just information for parents to see how their kid’s school performing. It is also a key measurement for real estate agents and potential homebuyers. The median home prices in any area are affected by the quality of education, because almost all parents want to provide the best education for their children. The API score affects property values dramatically. Here is an example how the API score affects real estate values in neighboring cities of Santa Clara county:

Los Altos median home price: $2,070,000, average API score: 949
Mountain View median home price: $680,000, average API score: 764

Cupertino median home price: $1,120,000 - average API score: 920
Sunnyvale median home price: $830,000 - average API score: 772

Will the real estate prices fall in the areas with API score more then 900? I doubt.

By the way almost forgot to post a link to API score of 2005 Academic Performance Index - a valuable tool for renters, homeowners, homesellers, homebuyers and real estate agents.

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