In the Merced, CA market in September, new home closings grew 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 out of 260 total closings, making up 8.1%. This is up on a percentage basis from 5 of 257 a year earlier. Following a year-over-year increase in August, closings of new and existing homes also jumped year-over-year in September.
Pricing and Mortgage Trends
The average value of newly sold homes in September 2015 was $292,024, down from last year's $424,800. This came after a 20.9% bump 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. Together, foreclosures plus REO closings made up 15.1% of existing home closings, down from 27.0% a year earlier. The percentage of existing home closings involving foreclosures fell to 5.4% in September from 10.7% a year earlier while REO closings as a percentage of existing home closings slid to 9.6% from 16.3% a year earlier.