NEW YORK ( TheStreet) -- The housing market has been credited as a positive influence for the U.S. economy so far in 2013. Sales of existing homes have been on the rise, as have housing starts and new-home sales. Inventories of homes for sale have been limited and home prices have been on the rise.I view this housing recovery as kind of an anomaly, as it has been fueled by cash buyers mostly from overseas, and by institutional investors buying blocks of homes and converting then to rental properties. In addition, the big banks have become greedy, paying more than appraised value for distressed properties and withholding their Other Real Estate Owned from the market, betting that home prices will continue to rise. This could become a different type of housing bubble, with home owners and potential buyers on Main Street shut out of the opportunity to own the home of their dreams.
Fear and Greed Return to the Housing Market
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