In September, closings of new homes in the Merced, CA market rose year-over-year, but the increase was less than August 2015. New home closings moved from 5 a year earlier to 21 after the figure moved from 2 in August 2014 to 23 in August 2015.
A total of 155 new homes were sold during the 12 months that ended in September, up from 139 for the year that ended in August.
New home closings were 21 of the 260 total closings, up on a percentage basis from 5 of 257 a year earlier. For new and existing homes, closings gained year-over-year in September after also increasing in August year-over-year.
Pricing and Mortgage Trends
The average new home price was $292,024, down from $424,800 a year earlier. This followed a 20.9% surge in August year-over-year.
The average mortgage size went down to $262,161 from $347,432 a year earlier. Average mortgage size on new homes went from $213,822 in August 2014 to $246,703 in August 2015.
Other Market Trends
There was no change in the composition of the new home market with regard to the types of properties sold in September 2015.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in September, but did not appear to be dragging the market. Out of all existing home closings, foreclosures combined with REO closings represented 15.1% of closings, below 27.0% a year earlier. The percentage of existing home closings involving foreclosures declined to 5.4% in September from 10.7% a year earlier while REO closings as a percentage of existing home closings sank to 9.6% from 16.3% a year earlier.