Industry News

Real estate stocks take a nosedive

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The Inman News Real Estate Stocks Index suffered a decline of nearly 7 percent of its value in August as nine of the 10 publicly owned real estate brokerage, mortgage and technology stocks that make up the hypothetical index lost ground. The only winner in the index in August was Homestore, the online real estate company that operates the National Association of Realtors' Web site. Homestore's shares gained $1.19, or more than 45 percent, after adding 51 cents per share for a 25 percent gain in July. Homestore's good news was a second-quarter profit of $3.3 million or 2 cents per share on revenue of $63.3 million. Earnings would have been higher had the company not been obligated to pay $4.2 million in litigation expenses to defend two former officers against allegations that they violated federal securities law. The negative effect of those expenses was partially offset by a $1.4 million cut in prior restructuring costs. Deutsche Bank upgraded its recommendation to inv...