Create an Email Alert
Alerts are a great way for you to stay up-to-date on things you care about. We will email you a list of the new items that match your criteria at a time of your choosing.
This alert is for the following:
- Topic:
- Another predict came true? Cramer: Housing Has Officially ...
Another predict came true? Cramer: Housing Has Officially Bottomed
sponsored by
White Picture
Contributions: 1900
Zillow All-Star
Since March 2009
View full profile
How can Cramer be so sure? New housing data reported today showed a dramatic change for the better, especially in some of the hardest-hit areas in the US. That news, along with much lower prices and the working off of inventory, validate his prediction, made last August, that housing would stabilize this month, ending its multiyear declines.
What does a bottom look like? It's the combination of ramping sales, and sales in certain areas are up ten times those of last year, and an end to falling prices. That's exactly what we've seen for the past three months, Cramer said.
Of course, this doesn't mean home prices skyrocket right back to their bubbly heights. Cramer's call was about only price stabilization, not appreciation.
Also, don't think the new starts, combined with foreclosures, will lead to a new glut of inventory. Builders aren't going to make that mistake, Cramer said, putting up homes they can't sell. Nor do the banks need to rush foreclosed homes back onto the market. They now have the capital, thanks to Washington and a spate of secondary offerings, to hold on until they get their price.
Finally, if you're wondering why the market didn't rally because of housing starts, that's because people are as blind to the bottom as they were to the top, Cramer said. But you can't wait for some analyst to make the call. You have to buy now if you want to make some money.
I don't think we would follow what is Cramer said or do what Cramer told you to do; it's a prediction, however.
http://www.cnbc.com/id/31388528
If you find this content is in violation of our Good Neighbor Policy, please let us know and we will review it.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.