Industry News

Real estate stocks suffer Wall Street’s wrath

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Editor's Note: Inman Index closed the books two days early in July to accommodate our reporter's travel to San Francisco for our Real Estate Connect conference. The full-month report will resume in August. If ever there was a black month for real estate industry stocks, July was it. As of July 27, all 10 of the issues that comprise the hypothetical Inman Index, along with many other housing-sector companies, had lower valuations than they had had at the beginning of the month. The worst performances among the 10 Inman Index stocks were turned in by Move Inc., which declined 24 percent from $4.50 to $3.41, and IndyMac Bancorp, which dropped 21 percent from $29.33 to $23.09 in the shortened July period. IndyMac announced it would lay off more than 400 employees and take a $6.5 million pretax charge in the third quarter as a result of the staff reduction. Cost savings in the second half of the year are expected to more than offset the charge, the company said. Analysts at Lehman Bros. do...