There could be some cracks in the nascent housing recovery, says economist David Rosenberg. "We...

|By:, SA News Editor

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)