Home sales in the U.S. probably dropped to a seven-year low in September while business spending grew, showing parts of the economy are weathering the deepening housing slump, economists said before reports this week.
Total purchases of new and existing homes fell to an annual pace of 6.02 million, the fewest since August 2000, according to the median estimate of economists surveyed by Bloomberg News. Orders for long-lasting goods rose 1.5 percent after falling in August, a separate report may show.
The real-estate recession will worsen as stricter lending rules and higher mortgage rates make it more difficult for potential buyers to get financing. The economy will avoid recession as businesses, led by growing demand from overseas, continue to invest and hire.
"The credit tightening is having a significant impact on home sales,'' said Dean Maki, chief U.S. economist at Barclays Capital in New York. "The rest of the economy continues to grow at a solid pace.''
That being said, keep in mind that Indianapolis was ranked the second best city in the country to show signs of rebounding. This city is a great place to live and work, and if you leave out all the negative media exposure we are currently experiencing you might be left with only the facts, there are many quality homes in various price ranges to choose from and money is still cheap!!!