NEW YORK ( TheStreet) -- TheStreet's Jim Cramer and Debra Borchardt discussed some of the stocks investors can buy to take advantage of the strong housing recovery.
"New home sales numbers came out and, boy, were they good," Borchardt said. Cramer's explanation was simple: there's a "housing shortage." It helps that the median home price this month was $271,000, the highest level since 1993, Borchardt added.
Cramer noted that the housing market continues to move in cycles, where the market tends to move up when there is a shortage in housing and down when homebuilders meet demand with an increase in supply.
So how does an investor play housing? According to Cramer, we're only in the second inning of the rally and there's plenty of room to go. He noted several companies that should benefit from an increase in homeownership, including Toll Brothers (TOL - Get Report), Home Depot (HD - Get Report) and Sherwin Williams (SHW - Get Report)."Don't out-think this," Cramer said, adding Masco (MAS - Get Report) and Whirlpool (WHR - Get Report) to the mix of names that will benefit from a continued housing recovery. None of these companies are part of his charitable trust,
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts