Lots of things are coming together for housing, but nobody seems to care. We had Wells Fargo (NYSE: WFC) (Cramer's Take) the other day offer attractive interest-only mortgage loans to those in trouble, a bet that eventually housing will go higher. We had Fannie (NYSE: FNM) (Cramer's Take) allow people in trouble to rent to stay in their homes, and the government is going to extend the tax credit for homebuyers and broaden it. Plus, mortgage rates went under 5% again.
But nobody cared. No one.
All of those housing bears that cited and recited every single piece of negative housing data any time it came up, all of those who touted the Amherst report on shadow inventory, or those who pooh-poohed me when I said that housing was done going down -- the numbers indicate I am right but no one pays attention to positive numbers -- simply can't even put these stories together and realize that they change the inventory situation dramatically.
Why is this? Why could we get so much important news about housing and have it ignored, yet there was a virtual countdown daily by reporters about the expiration of the credit?
The other night on my show I postulated that the bears were in a "hear no good" mode. I think these amazing decisions, which will all keep the excess inventory from hitting the market and thereby destabilizing prices, coupled with the inability or unwillingness of the homebuilders to build new homes, makes the housing case so strong that you can bet on the banks for their next leg upward.
However, I am totally alone on this.
So listen to me at your own peril -- because you'll also hear the opposite of what I am saying, literally on a daily basis.
Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long Wells Fargo.
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Reader Comments (Page 1 of 1)
11-14-2009 @ 6:53PM
michael murphy voorhees nj said...
hey jim your delusional given the fact that unmployment is at all time highs and will go higher this will stop most of the buyers who many have wanted to buy a home from buying a home. regardless of intrest rates or tax credits!!!! a low rate and tax credit means nothing to a buyer that has no job
or may lose his/her job!!!! untill the unemplyemnt rate is reduced no housing recovery will happen read the headlines 10.2 % before you blog jim stay with stocks dont blog on something you know nothing about!!! stay out of my bussness michael murphy remax
11-06-2009 @ 3:56PM
Happy4LA said...
Jim Cramer knows as much about real estate as he does about stocks. Check his track record. And if you don't have the time or inclination... his track record is horrible. He doesn't care if he's right or wrong. He just needs to be right once, or right for a few days or hours and he can spin that to some unsuspecting guy who thinks that the ability to talk and promote will mean Jim Cramer can make him money. Wrong! If Jim Cramer were any good at what he does why would his stock price be down to under $3 a share? Wake up and stop quoting this snake oil salesman. Jim Cramer should be a pariah. Look at what Jon Stewart did to him and Jim Cramer sat silently and took his whiping. And then he had the gaul (?) to promote a guy with a 50 IQ as a stock whiz, Lenny Dykstra. Is there any sanity left in the world?
11-06-2009 @ 4:06PM
Happy4LA said...
Make that "whipping".
11-06-2009 @ 4:48PM
brea said...
perhaps jimmie because what is really happening is as follows. the lowend REO and short sales are being puchased all cash! now that is so stupid i don't think it deserves more. secondly why would someone continue to rent a home only a month ago they owned. it makes more sense to gear down and rent something real cheap and start the saving process over. the offer of a lower payment despite upside down valuation makes even less sense. the appreciation back to original value will take years. no i don't want a subsidized mortgage at current mrkt prices only to have the negative net worth sit on the books for 5-8 years. the BANKS need to take the hit!
fact is "they" aren't offering an opportunity to people! it's a completely onesided selfseving program!!! they can go to hell. last of course unemployment continues to rise.
the foreclosures now are on the newly unemployed the banks would prefer to do anything rather than forclose.
except take the write down, which is what their gonna have to do at some point. the longer they wait the more it hurts every person in this country. have a chat your
higher ups, over a martini or something.