Friday, March 11, 2005

Merrill Lynch: Housing Similar To Dot-Com Bubble

The Inman Real Estate News has a post on a Merrill Lynch commentary, "Housing Bubble Getting More Bubbly". The report compares the ratio of stock ownership to GDP in 2000 with the real estate ratio today. Merrill Lynch;"We get nervous when we see things move parabolically north because no asset class at any time ever failed to mean-revert after such an upside move."

The Inman article is a good read and makes some candid points for a RE publication. "And just because the housing bubble hasn't burst doesn't mean that it doesn't exist, the report (ML) states."

The investment firm has also taken notice of the inventory increase often covered in this blog. "It's with this inventory backdrop in mind that we were less than ecstatic to see that near-5% run-up in housing starts last month – reminds us of the 'build it and they will come' mentality in the tech space circa 1999-2000.' the report concludes."


At 4:52 PM, Blogger mspenelope said...

March 12,2005
Hi Patrick,

For your readers that might want to
read the Inman article you refer to ...without having to subscribe to Inman....the site below normally runs most of what Inman posts.....


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