ML-Implode News - Housing Market May be Experiencing a "Bubble within a Bust"

``While some markets and submarkets have a bubble feel to them, a more likely outcome, the commentary says, is a "bubble within a bust that supports a temporary spike in home prices." As interest rates move up the risk-adjusted returns for investors who convert single-family homes to rentals will diminish as will investor purchases.
Wells Fargo cites a number of reasons why, while it does see the housing recovery remaining on course it does not see its bubbly aspects continuing and points to the cooling of overall economic activity at the end of the first quarter. Most key economic indicators such as retail sales, non-farm employment, and consumer confidence slowed growth or even declined and economists have scaled back projections for the second quarter. The recovery, however, does remain on track.''

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Housing Market May be Experiencing a "Bubble within a Bust"