This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cramer's 'Mad Money' Recap: Housing Nightmare Over (Final)

Click here for an archive of Jim Cramer's Mad Money recaps. Click here to get Jim Cramer's Mad Money Post Game video exclusively on

"I'm calling a housing bottom tonight," an exuberant Jim Cramer told the viewers of his "Mad Money" TV show Tuesday.

Cramer's call comes 14 days ahead of his original prediction, which called for a bottom in the housing market by June 30. However, after today's housing start numbers showed strength even in the nation's hardest hit areas, he amended his original call that was made back in August 2008.

Cramer said the latest reports showing a rise in housing starts and permits were too large to ignore. He said it proves the glut of excess inventory is finally behind us and home builders feel they can safely get rid of the land they've been sitting on by building homes.

Cramer Clearing House All things Cramer Mad Money Recap Trade With Cramer Free

Cramer said his housing bottom is not a call to buy the homebuilders, but rather a signal that home price depreciation has largely ended. He said that home prices will not be rising just yet, but they also will not be falling any longer.

Cramer said his bottom call also disproves the theory that interest rates have moved too far to promote home ownership.

Cramer said the stocks to own during a housing bottom are banks like Wells Fargo (WFC - Get Report), JPMorgan Chase (JPM - Get Report) and Bank Of America (BAC - Get Report), all of which he owns for his charitable trust, Action Alerts PLUS and all of which have large mortgage exposure.

Cramer said new home formation, low interest rates, tax incentives and excess inventory have all made this bottom possible, and now is the time to step up and take notice.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BAC $15.31 0.00%
CDNS $18.08 0.00%
BRCD $11.46 0.00%
JPM $59.55 0.00%
ONNN $11.80 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs