More Evidence that the Housing Bubble is Deflating

Richard Bernstein, a strategist at Merrill Lynch, pointed out in a note to clients that construction company executives had been vigorously selling their shares in their businesses. Heavy insider selling is a red flag.

"We think there is a strong contrary message," Mr. Bernstein said, because share sales at home builders are occurring "at a record pace across nearly the entire industry."

"We think this insider selling somewhat mimics that of the technology sector during the year surrounding the peak of the bubble," he said.

If insiders are selling, it is not a good sign for the near-term outlook of the industry.

[from this link, courtesy of Sean]