Shares of Standard Pacific Corp. fell 12% on Wednesday as concerns over the mortgage and housing markets battered the Irvine-based homebuilder.
The company counts a market value of about $550 million, down nearly 70% for the year. The company’s shares have dropped roughly 50% in the past two months.
Standard Pacific’s stock has hit a particularly rocky patch the past few weeks, falling on disappointing housing industry sales forecasts, as well as concerns over the company’s access to debt.
The latest blow: Homebuilder optimism in the market is at its lowest point in 16 years, according to a report released today by the National Association of Home Builders.
“There is no question that problems in the subprime mortgage sector have spilled over to other components of housing finance, including the Alt-A and jumbo markets, delaying a revival of the single-family housing market,” NAHB chief economist David Seiders said in a statement.
