Industry News

Wall Street hammers real estate technology stocks

Inman Index: HouseValues, ZipRealty suffer substantial share-price declines

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Investment markets were relatively quiet overall in February, but Wall Street hammered two real estate-meets-technology players, HouseValues and ZipRealty, during the month and on the first day of March. Other February losers included IndyMac and Fannie Mae; winners included Homestore and Countrywide. HouseValues recorded a 29 percent jump in its per-share price from $13.02 to $16.79 in January, but gave back more than half of that gain with an 18.7 percent drop in February to close at $13.50. The company announced an expansion of its new HomePages service into 33 additional markets. The service combines aerial maps, neighborhood information and home listings into one Web site. Investors may have been dismayed at the likelihood of new competition from Homestore, which is backed by the National Association of Realtors, and the new Zillow.com, which estimates current market values of homes based on prior sales prices, appreciation rates and other data. Zillow has been launched as an ad...