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Thursday, Mar 21
There could be some cracks in the nascent housing recovery, says economist David Rosenberg. "We...
There could be some cracks in the nascent housing recovery, says economist David Rosenberg. "We certainly have a housing recovery," he acknowledges, however net household formation figures could be exposing some distortions. For example, while existing home sales are hitting three-year highs, Rosenberg notes a lack of first-time buyers, as well as a distinct absence of 'natural buyers.' "Almost a quarter of those sales are institutional investors gobbling up homes and then re-renting them out," he says. "That's not a natural buyer." And, what we're seeing isn't healthy net household formation. (Video)