Fewer stops on Tour of Homes a sign of slowing market

By Rolf Boone | The Olympian • Published July 24, 2008

The number of houses on the Olympia Master Builders' Tour of Homes this year has fallen more than 50 percent from last year to a new low of 12, a sign the annual event to showcase home building and remodeling trends is not immune to a slower housing market.

This year's tour, which takes place the next two weekends, will showcase homes in Olympia, Lacey and Tumwater, down from 30 last year, data show.

Olympia Master Builders, a trade association, has organized the tours since 2001.

In its first year, 21 homes were shown, but as the South Sound housing market began to heat up, more builders participated, OMB executive officer Laura Kimbrough said.

Master Builders' data show the number of homes rose to 26 in 2006 and 30 in 2007.

Slower market

Kimbrough acknowledged Wednesday there are fewer homes on the tour, in part, because of the slower South Sound housing market.

Through the first half of this year compared with the same period last year, Thurston County home sales have fallen more than 20 percent, according to the Northwest Multiple Listing Service.

Builders aren't starting as many projects as a result.

Also builders must commit homes to the tour well in advance. And some weren't willing to commit this year if they felt they could sell their properties earlier, Kimbrough said.

"Housing goes in cycles," she said. "It's a down market, but they (builders) know it will turn up."

Trans Northwest Construction of Olympia, a past participant in the tour, is showing one home this year, president and owner Mike Opitz said. The home, near Yelm, measures 4,450 square feet and is listed for $848,000.

Opitz said builders are cautious with the housing market, but he feels the tour can improve his chances of a sale.

"I'm an optimist," he said. "It seems to me that in tougher times this is a great opportunity to showcase the home and its quality and to gain exposure. It's a good amount of exposure for a relatively small amount of money."

To enter a home on the tour, the OMB charges builders $1,350 for a new home or $1,050 for a remodeled home, said Stacey Genzlinger, director of member services. Opitz said he could spend up to $2,000 on his own marketing and still not attract as many people as might see his house on the tour.

"We may get 100 people or more a day," he said.

Jackson Homes Inc. of Lacey partner Pete Jackson said he is selling two homes on the tour this year in Tumwater and has participated in every tour since 2001. In past years, Jackson Homes had sold houses during the tour or soon after, he said.

"This may be a different year because of the slower market," he added.

When the housing market was strong, Jackson Homes built up to 20 homes a year. Now, it's about half of that amount, he said.

Jackson said his two houses are competitively priced at about $450,000, and he has included extra flooring materials and sprinkler systems, for example, as incentives to stimulate a sale.

Jenamar Communities, developers of Jubilee in Hawks Prairie, passed on the tour this year after trying it a few years, said Christine Bachman, vice president of marketing.

She supports the tour, but it tended to attract families and children who weren't old enough to live at a community that is open only to those 55 and older.

Still, Bachman said she gave the tour careful consideration because sales have slowed at Jubilee, too.

Year to date, Jubilee has sold 28 homes, down from 58 in the same year-to-date period last year, she said.

"They just can't sell their homes," Bachman said about prospective buyers of Jubilee houses.