New home closings fell year-over-year in August in the Santa Cruz, CA market, and the decline was by a larger percentage than the July 2015. New home closings moved from 5 a year earlier to 1 after the figure moved from 27 in July 2014 to 6 in July 2015.
A total of 63 new homes were sold during the 12 months that ended in August, down from 67 for the year that ended in July.
New home closings represented 1 out of the 248 total closings, which is a smaller percentage than the 5 of 265 total closings a year earlier. After rising year-over-year in July, closings of new and existing homes slid year-over-year in August.
Pricing and Mortgage Trends
The average value of newly sold homes in August 2015 was $411,000, down from last year's $541,800. This was on the heels of a 15.3% bump in July year-over-year.
Average mortgage size on new homes fell from $460,244 to $328,700. Average mortgage size on new homes went from $289,549 in July 2014 to $414,985 in July 2015.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen.
Foreclosures and real estate owned (REO) closings continued to decline from a year earlier in August, but did not look to be a burden on the market. Together, foreclosures plus REO closings accounted for 8.1% of existing home closings, down from 10.8% a year earlier. The percentage of existing home closings involving foreclosures went from 3.5% in August 2014 to 2.8% in August 2015 and REO closings as a percentage of existing home closings slid to 5.3% from 7.3% a year earlier.