In the Santa Cruz, CA market in September, new home closings sank year-over-year, but the decline was less than the year-over-year decline in August. New home closings moved from 5 a year earlier to 3 after the figure moved from 5 in August 2014 to 1 in August 2015.

A total of 61 new homes were sold during the 12 months that ended in September, down from 63 for the year that ended in August.

3 of the 260 total closings were new home closings, a shift on a percentage basis from 5 out of 251 a year earlier. After dropping in August from a year earlier, closings of new and existing homes increased year-over-year in September.

Pricing and Mortgage Trends

The average new home price was $463,667, down from $501,200 a year earlier. This followed a 24.1% fall in August from a year earlier.

Average mortgage size on newly sold homes saw a decline year-over-year from $395,800 to $362,469. Average mortgage size on new homes went from $460,244 in August 2014 to $328,700 in August 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 rose in September from a year earlier and did not appear to be dragging the market. Foreclosures and REO closings, taken together, accounted for 6.6% of existing home closings, higher than 6.5% a year earlier. The percentage of existing home closings involving foreclosures declined to 2.3% in September from 4.5% a year earlier while REO closings as a percentage of existing home closings grew to 4.3% from 2.0%.

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