Home builders are optimistic that there will be high traffic and robust new home sales during the 2016 Fall Parade of Homes (KCParadeofHomes.com), which runs through Oct. 9.
Thanks to continued historically low mortgage rates and pent-up buyer demand, home builders are gearing up for one of the most successful Fall Parade of Homes tours in a decade.
“There are a lot of quality homes out there from all the builders now, and I think this next year is going to be even bigger than the past year has been,” said Billy Barnard Jr., project manager for Signature Builders. “A lot of people have been saving their money, and they are now ready to move into their ‘forever homes.’”
Plentiful new home inventory, both in terms of model homes and spec homes, is helping create excitement and optimism among homebuyers, according to Barnard.
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“There was such a need for new home inventory after everything crashed but there just hasn’t been product out there. Now people are walking through homes again and saying, ‘Wow, I could have this,’ “ Barnard said. “There are a lot of high quality homes out there right now and people are seeing that quality.”
Thanks to historically low interest rates and a loosening of home lending restrictions, buyers can again make the step into first-time home ownership or buying that dream home, according to Mark Mather, co-owner of Richard Mather Builders.
“It had gotten to the point where a lot of people couldn’t enter the market because they couldn’t get through the down payment thresholds, but lending requirements are getting more reasonable,” Mather said. “It priced a lot of buyers out of the market for some time, so there’s been some pent-up demand and they’re now getting back in the market, so it’s been good.”
J.R. Buckner, president and CEO of First Federal Bank of Kansas City, said the favorable mortgage rates are expected to remain at historic lows for the foreseeable future, which bodes well for builders and buyers alike.
“We continue to see strong demand for both new home construction loans as well as resales,” Buckner said.
Dale Falck, senior loan officer for PrimeLending in Kansas City, agrees that stronger economic fundamentals in general are helping release pent-up demand in the residential real estate market.
“We had this period of people holding back and waiting to see what is going on with the economy,” Falck said. “We are in an era where people are again buying new homes.”
Presented by the Home Builder’s Association of Greater Kansas City (HBA) and sponsored by Stewart Title, this year’s Fall Parade of Homes features 318 single-family homes, townhomes, and maintenance-provided villas constructed by 96 Kansas City metropolitan area builders across five counties on both sides of the state line.
2016 Fall Parade of Homes
When: 11 a.m. to 6 p.m. Sept. 24 through Oct. 9. Admission is free.
Where: 318 homes throughout the metro. Free Parade Guides listing addresses and information for every home on the Parade are available at the HBA office at 600 E. 103rd St., near Interstate 435 and Holmes Road, and at all Parade homes.
Home prices: Range from $182,500 to $1.6 million.
More Information: Event information and a digital Parade of Homes Guide can be found at KCParadeofHomes.com using an online Home Search tool for locating homes by builder, price, location, school district or amenities, plus a Mobile Search and Maps tool for searching from your smart phone or tablet.