Jim Cramer: Housing poised to recover

A pretty upbeat perspective on the housing market from Jim Cramer, who when last seen was bashing homebuilder stocks. He’s doing the same kind of root analysis that we do here at Frothing Developer

Cramer’s points:

  • 865,000 new homes purchased normally.
  • Lots of pent-up demand.
  • Price matters, and the price drops are having an impact.
  • Federal action to prevent foreclosures
  • April sales are up over March because of these factors
  • Typical bad 2/28 loans are coming to an end. Last quarter of 2006 was the end of those. By end of 2008, those loans will all have reset.

“Why no one thinks these things matter is beyond me”.

“How anyone could think things could get much worse is beyond me and flies in the face of reality….This is coming to a conclusion….maybe less than a year.”

image

We agree.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s