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), JPMorgan Chase ( JPM) and Bank Of America ( BAC), 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.

If you liked this article you might like

Bank Stocks Move Higher Ahead of Federal Reserve Meeting

CEOs Focused on Tax Reform, Business Roundtable Survey Says

All Eyes on the Godfather of Central Banking as Fed Has Huge Meeting This Week

Chase Hires Amazon Customer-Service Exec as Digital's Rise Reshapes Branches

Here Are Monday's Hottest Stocks as the Dow Reaches New Records