Industry News

Real estate stocks take deep dive

Inman Index: Wall Street hammers home builders, mortgage cos.

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What May gaveth, June tookth away. After a promising uptick in May, real estate stocks retreated with a vengeance in June as eight of the 10 issues that comprise the hypothetical Inman Index moved lower and the Index overall declined more than 10 percent, a significantly worse performance than the stock market overall. Hardest hit were shares of Fidelity National Financial, which dropped from $28.16 on June 1 to $23.70 on June 29, a decline of almost 16 percent and a reversal of fortune compared with earlier this year. The downturn could have been a negative reaction to Fidelity's deal with a private equity firm to take over human resources outsourcer Ceridian or might represent a vote of no confidence in Fidelity's new CEO, Alan Stinson. The deal and Stinson's ascension from co-chief operating officer to the top slot were both announced at the end of May. Disgruntled shareholders have filed a lawsuit and hired financial advisors to challenge the Ceridian deal, arguing the ...