The blaze that started around 2 p.m. on Friday near Watsonville has burned an estimated 630 acres and destroyed 10 residences and 10 outbuildings, a Cal Fire volunteer said.
About 650 firefighters worked to tackle the flames. Two minor injuries have been reported.
Fire officials initially evacuated about 2,000 residents in the Larkin Valley and Buena Vista areas, according to the Santa Cruz County Sheriff's Department.
A Cal Fire volunteer said most residents were allowed to return home.
American Red Cross evacuation centers at Aptos High School at 100 Mariner Way in Aptos, and at Lakeview Middle School at 2350 East Lake Ave. south of the county fairgrounds, closed at 9 p.m. Friday.
Residents in need of shelter should call the Red Cross at (831) 462-2881.
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MORE: ABC7's Bay Area wildfire resource guide and safety tips
MAP: Google Reference Map of California's Early Season Fires
(From the Governor's Office of Emergency Services).