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), Home Depot (HD) and Sherwin Williams (SHW)."Don't out-think this," Cramer said, adding Masco (MAS) and Whirlpool (WHR) to the mix of names that will benefit from a continued housing recovery. None of these companies are part of his charitable trust,
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