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“There is no reason to believe that the echo bubble is any more stable than its predecessor,” especially given the government’s overwhelming role in fostering the latest recovery, Mr. Tenebrarum said, contending that housing’s brief recovery may turn out to have been entirely “illusory.”

“It is probably best not to pin too much hope on the echo bubble,” he said. “Wall Street firms buying up homes in [bank-owned foreclosure]-to-rental schemes don’t represent organic demand, and in fact only serve to price out potential first-time buyers.”