More Auto Loans Could Mean More Chicagoland New Home Buyers

chicago real estateMore people are getting loans for new cars (and the loans are getting larger once again), and more people are opening new credit cards. Does that mean Chicago will see a resurgence in its new home market, too?
On the Equifax Personal Finance Blog, where experts keep tabs on all things related to credit, the posts suggest growth in all credit areas. “
Credit Trends: Signs of Life in the Credit Universe”  is the most recent article on the topic. The article demonstrates increases in the extension of new credit and a decrease in delinquencies on existing loans. The data also show that consumers are voluntarily paying down their debts. These changes could mean that more people will soon be in a financial position to purchase a new Chicago home.
What are the specific signs of the credit revival? First, there were 855,000 more auto loans extended in the first half of 2010 than in the same period in 2009. In June 2010, the number of new credit cards issued increased in year-over-year comparison for the first time since 2007. In the areas of both auto loans and credit cards, Equifax sees a loosening of standards to allow a slightly higher risk pool into the market.
But many consumers are taking steps to make themselves less of a risk. Equifax reports fewer delinquencies in all credit areas (including mortgages) and, of course, the trend of voluntarily paying down debt. Equifax reports that consumer debt is about $800 billion less than it was in October 2008, when it reached its peak.
With all the talk about tough requirements for getting a home loan, perhaps American (and Chicagoland) consumers are preparing themselves for the good times, when they can again start purchasing homes, cars, furniture and other big ticket items. According to Equifax, the resurgence in lending is a key factor in economic recovery. As the credit industry shows new signs of life, there’s a good chance Chicagoland real estate will follow.
Check out the details at the
Equifax Personal Finance Blog,  then let us know what you think. Is the credit resurgence good news? Do you see a similar revival in the real estate market soon?