A column at CNBC.com reminds us the U.S. housing market “has been running on distress for the past year, as investors rush to buy foreclosed properties in order to take advantage of today’s hot rental market.”  What’s newsworthy however, is that the supply of distressed properties for investors to gobble up has dwindled of late – explaining the unexpected 5.4% drop in existing home sales last month.  While on the surface a lower supply of distressed properties might sound like a good thing, the drop is due simply to a delay in processing foreclosures – not a lower rate of foreclosures.  The article delves further, to show how a lack of supply, even of distressed homes, impacts the ability of regular buyers to participate in the recovery.