New York, Florida still suffering from effects of foreclosure crisis, says Trulia’s Kolko: VIDEO

TRD New York /
Apr.April 17, 2013 02:00 PM

Trulia’s chief economist Jed Kolko said that although the housing recovery was “for real,” the price rises in many major markets were simply a rebound from the dark days of the housing bust. Speaking in an interview on Bloomberg News, Kolko said that strong job growth was increasing household demand, leading to an appreciation in house prices.

“What we’ve seen is a big shift of sales away from distressed properties to conventional properties,” Kolko said. “That’s a healthy thing for the market.”

Addressing the question of shadow inventory, Kolko said that it was localized in markets such as New York and Florida, places which have a lengthy foreclosure process. “In the rest of the country, most of the foreclosure crisis is behind us.”

Nationally, he said, it is roughly 44 percent cheaper to buy than to rent. However, he added, “the line is actually much closer in places like Manhattan.”

Foreign investors will continue to be players in the market, he said, noting that Trulia had seen significant online search activity from abroad, particularly in New York, Florida and Southern California. [Bloomberg News, via YouTube]Hiten Samtani

Related Articles

Nationwide foreclosures are at a 15-year low (Credit: iStock)

Foreclosures nationwide fell to 15-year low in 2019

494 Broadway and Thor Equities' Joe Sitt (Credit: Google Maps)

Thor faces foreclosure on site where lender says it’s seeking “unrealistic rents”

Maefield Development's Mark Siffin and 20 Times Square (Credit: Maefield)

Lender forecloses on Maefield’s billion-dollar Times Square project

Thor Equities' Joe Sitt and 725 8th Avenue (Credit: Google Maps)

Thor facing foreclosure at Theater District building

Home foreclosures dropped nearly 20% in Q3, report shows

Home foreclosures dropped nearly 20% in Q3, report shows

Manhattan’s 10019 zip code, which covers Midtown, Times Square, Herald Square and Midtown South, saw the most foreclosures in the borough with eight. (Credit: iStock)

Manhattan foreclosures soar 118%, driven by mortgage defaults

15 East 63rd Street and Oleg Cassini (Credit: Google Maps and Getty Images)

Oleg Cassini’s former UES headquarters faces foreclosure

Mayor Bill de Blasio and Frank Carone (Credit: Getty Images)

City tapped De Blasio donor to take over foreclosed properties