Industry News

Blood bath continues for real estate stocks

Inman Index: IndyMac, Countrywide, First American suffer most

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October was yet another bad month for real estate stocks. Only two of the 10 companies that comprise the hypothetical Inman Index escaped negative returns for the period, and none of the companies is in positive territory for the first 10 months of this year. Shares of Toll Brothers posted a healthy jump of 13 percent in October while shares of HouseValues eked out an insignificant gain of one cent for the one-month period. Yet both companies have suffered share-price losses of approximately 29 percent so far this year. Of the other eight companies, mortgage lenders IndyMac and Countrywide and title insurer First American Financial were hit the hardest for the month. Shares of IndyMac dropped a scary 42 percent in October and have lost 71 percent of their value in 2007. Shares of Countrywide fell 18 percent in October and have declined almost 64 percent for the 10-month period. And, shares of First American fell 17 percent in October and are down a comparatively modest 26 percent for t...