Testifying before the Senate’s Subcommittee on Housing, Transportation and Community Development, Laurie Goodman of Amherst Securities Group said that because of the huge backlog of foreclosed and REO property, consumers alone can’t be expected to fuel the recovery.

[W]e believe that long-term investors in 1–4 family residential real estate are the key to a housing recovery: they are the only potential buyers of many distressed homes that are likely to hit the market over the next 5–6 years. Investors need to be part of the solution.