Tracking the real estate meltdown with comparison charts
Posted by Russell Leidich, Google Finance 20% Engineer Everyone knows that business cycles oscillate from boom to bust every so many years, and real estate is not unique in this regard. Stock prices reflect these trends. Anyone who has looked at a home builder stock in the past couple years is intimately aware of this connection. But what does it mean to say that an industry, as opposed to a stock, is experiencing a downturn? It's not just a matter of saying "real estate stocks are down" -- it's more that they're down, in a roughly correlated manner, over a meaningful common time period. Let me show you what I'm talking about. Here are 3 major homebuilders -- Centex , Lennar , and Ryland -- in the same graph: Let me take a moment to explain how I generated this chart, so that you can do your own analysis of stock trends in real estate (or any other industry). Go to Google Finance . Type in the first symbol, CTX (Centex). Hit Enter. You should see a chart f...