Cramer: Wells Fargo Signals Housing Recovery

NEW YORK (TheStreet) -- Jim Cramer believes we are now in a housing recovery with positive data from Wells Fargo (WFC). Housing prices have increased across the country and even house prices in Florida and Las Vegas have turned. We have seen more money flow and lending, and even the worst markets have been doing well.

As house prices increase and more money is lent out, homebuilding will increase and further help the recovery. Cramer says we will see a "positive scenario" where housing will create more jobs. Wells Fargo, which owns at least 30 percent of the housing market and has over $1 trillion in mortgage services, recently beat analysts' earnings estimate with an earnings per share of $0.82. Cramer says "there's no one you can trust more than Wells Fargo", and its quarter results indicate serious improvement in the housing market.

Housing will be very important for the overall recovery and "the data is very definitive that things are better" says Cramer. To invest in the housing market, Cramer suggests D.R. Horton (DHI) or Pulte (PHM) as possible options and says "now the marginal homebuilders will start doing well". Looking forward, Cramer believes this will be a very good time for housing.

This article was written by a staff member of TheStreet.