Homebuilders, developers anticipate busy Spring Parade of Homes

If traffic into model homes and new communities is any indication, 2016 should be a banner year for the Spring Parade of Homes. The parade is typically the kickoff to the spring home buying season, but homebuilders in new home communities like the Northland’s Woodneath Farms say they saw an unusually high number of people visiting model homes as early as late February.

“We’re already seeing record numbers of visitors to our model homes week after week,” said Jenni Mann, director of marketing for Hunt Midwest Residential Development. “We have a lot of new, fully furnished model homes for people to see and expect a large turnout for this season’s Parade.”

Mann says mild weather this winter may have helped draw more traffic to new homes in the region, but she also believes the stronger economy and job market is a factor.

“Certainly the weather has helped, but a hot resale market, ongoing low interest rates and overall confidence in the economy, I think, have encouraged people to start looking for a new home earlier than in years past,” Mann said.

Prospective homebuyers will be able to tour more than 340 homes on this year’s Parade of Homes over three weekends beginning April 23. Patrick Willis, president of the Home Builders Association’s Parade of Homes Committee, says he doesn’t believe homebuilders have been this optimistic about traffic and new home sales in almost a decade.

“There is a lot of activity in the new home market right now. We are very busy,” said Willis, who is also president of Willis Custom Homes. “People seem ready to find their just-right home, and I believe homebuilders are feeling upbeat.”

Willis characterizes the sentiment among homebuilders as “cautious optimism,” because the economic downturn and housing crisis of 2007 and 2008 is still fresh in the minds of many homebuilders.

“Builders are more measured in how much inventory they are keeping, and buyers are more educated now than they were in the past, so this is a new world and a new dance,” Willis said.

Fred Delibero is looking forward to solid traffic for the Spring Parade of Homes. The founder of Summit Custom Homes, Delibero has a total of 12 homes entered in the Spring Parade, including five homes in Lee’s Summit, three homes in the Northland, two in Olathe, one in Shawnee and one in Lenexa.

“Demand for new homes is generally exceeding supply with fewer than three months of inventory on the market,” Delibero said. “Those are historically low numbers. 2016 should be a great year for housing in the Kansas City market.”

Because demand for new homes is exceeding supply, homebuyers who head out to the Parade and think they may be interested in purchasing a model home or home that is almost ready for occupancy, should think about doing a little advance preparation. Willis suggests homebuyers talk to a lender sooner than later, obtain a prequalification letter and zero in on homes in their desired price range.

“Many people head out to the Parade to get ideas about what they want in a new home and aren’t necessarily ready to purchase, but (seeing the homes) can push them over the edge and they’ll feel ready to buy.” Willis said. ”That’s why it’s a good idea to do your homework first.”

This story was originally published April 16, 2016 at 7:05 PM with the headline "Homebuilders, developers anticipate busy Spring Parade of Homes."