Mixed news on the home sales front

INDIANAPOLIS (WISH) - There's mixed news on the home sales front. Existing home sales are showing promise, at least locally. But the most recent numbers show new home construction is down.

Julie Armstrong and her husband are building a home in Johnson County.

"We've really gone for an open concept here," she said as she gave a crew from 24-Hour News 8 a tour.

The Armstrongs hope to be in their home by the end of December, "It's kind of been our dream. It's the American dream."

But it's a dream that took a bit of a dive in October. The U.S. Commerce Department says new home and apartment construction fell nearly 11 percent in October from the previous month.

Economists had predicted an increase.

The numbers are better for existing home sales, at least in the Indianapolis area. Nearly 2,200 homes in the area sold last month. That's about 400 more than the previous October.

Realtor Mike Watson says those numbers don't surprise him.

He says business is up at his office in Johnson County, "Typically, my experience is when you have a lot of supply, you'll have a higher (interest) rate or something to impact it. But we have lower rates, a low cost of housing, and I think finally the word's getting out that Indianapolis is a great place to live and we didn't have the boom and the bust that the Californias and the Floridas, etc., had."

Watson also said he's seen an increase in customers interested in new home construction this month.

He says that's because of the $6,500 tax credit for current homeowners that took effect November 7th.

The first-time homebuyer tax credit has been extended through next April. It is worth $8,000.

Realtors hope it will continue to spark sales of both new and existing homes.