New home closings increased year-over-year in September in the Salinas, CA market, but the increase was less than August 2015. New home closings moved from 11 a year earlier to 21 after the figure moved from 4 in August 2014 to 28 in August 2015.
A total of 185 new homes were sold during the 12 months that ended in September, up from 175 for the year that ended in August.
New home closings were 21 of the 335 total closings, up on a percentage basis from 11 of 299 a year earlier. Following a year-over-year increase in August, closings of new and existing homes also gained year-over-year in September.
Pricing and Mortgage Trends
The average value of newly sold homes in September 2015 was $504,600, down from last year's $559,409. This followed a 17.3% drop in August from a year earlier.
The average mortgage size moved to $403,065, down from last year's $409,905. Average mortgage size on new homes went from $450,578 in August 2014 to $280,951 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.
The average unit size of newly sold homes rose from 2,266 square feet a year earlier to 2,664 square feet.
Foreclosures and real estate owned (REO) closings continued to fall from a year earlier in September, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 11.5% of existing closings, lower than 16.0% a year earlier. The percentage of existing home closings involving foreclosures dropped to 5.1% in September from 7.3% a year earlier while REO closings as a percentage of existing home closings declined to 6.4% from 8.7% a year earlier.