You and Wally were holding hands together and having a wonderful time. Along the way, you meet Frank and Julie, of which all 4 of you said hello to each other.

You ask the both of them where they're going.
"Oh!" Julie first replied. "We're going to Sally's house! She's announcing a new production!"

'Who? A what?' You thought both of these very questions, but those didn't last long as all 4 of you were in front of yet another new house.

"Woah! Who's that?" You asked out loud now.
"Ha ha ha." Wally laughed. "You'll see Neighbor..."

The group walked in, and after going through the hall, they were all treated to full front row theater seats in front of a stage with some curtains.
As it turns out, the entire town of Home was there. Barnaby, Howdy, Eddie, Poppy, the works.
Barnaby was sitting next to Wally's seat, so naturally Wally reserved another seat next to for you. He put down the seat, and make a suggestive expression by moving his eyelids up and down to imitate wiggling eyebrows. You sat down in the seat, thanking him for it.
"Oh..." Barnaby watched and smiled. "Wally's got a new boyfriend/girlfriend? Ok."

The lights went out, and the colorful patched curtains slowly drew open to an obviously play like setting.
Then, out of the blue, a sun looking lady appeared on stage.

"Welcome Home citizens to Sally's Studio!" The girl announced, to which appplause was given.

"Thank you! Thank you!" She bowed down repeatedly to the audience. "You're too kind." She paused for a second and cleared her throat.

"Are you ready for the next show?!" She said, and then came amount of cheering.
"Hahaha..." There was an easel with a curtain covered canvas, supposedly for the next play.
"Drumroll please!"
And drumroll came as she unraveled the curtain on the canvas with the title of the play.

'Wally Darling and the 7 Neighbors'

"Oooooooohhh!" The crowd went, though they had deeply mixed feelings about this one.

Wally then looked at you with the most suggestive stare.
"WOOOOOOAAAAHHHH!" The crowd went seeing him staring.