Jim Cramer on Mad Money: Real estate market has officially hit bottom
Jim Cramer, never at a loss of words (or spastic arm waving for that matter), says we have officially hit the housing market bottom. At least nationally. As for the Boston real estate market, I'm not so sure (which I'll get into below). But first, here's Cramer at his best. Couched in his usual hyperactivity, he does offer some reasonable analysis to back up his claims, which makes this video worth the watch (if you can't see the video below, click here):
Interesting take, and a lot of it makes sense for the national market, but I just don't know that we are there yet for the Boston real estate market (and a few other local areas around the country - Jim specifically mentions New York as well). Plus, Cramer really only discusses the supply side of the real estate market (inventory of homes for sale, new defaults, REO inventory, new housing starts, etc), and I think he avoids some of the other factors that play into real estate market demand, such as rising interest rates, the probable end of the $8000 first time home buyer credit this year, and the substantial slowdown in the luxury segment in many cities (including the luxury Boston real estate market).
All in all, as economic recovery looks more promising, which should increase demand naturally for housing (and there are some signs of life in the pricier segments), I think we are closer to a national - and Boston real estate - market bottom than ever before, but not quite there yet.
What do you think? Make a comment!
If you like what you're reading don't forget to subscribe by email or by RSS feed.
Looking for Boston condos or other property? Use our new map based search to Search all Boston real estate for sale