Jim Cramer, host of CNBC’s Mad Money, stands by his prediction that housing will begin its rebound July 1.
“This whole mess started with housing, and when we finally get some stability in the housing market, I think things can really start to get much better,” Cramer said recently on his show.
“But first that market has to bottom. Last year I predicted that housing would bottom by June 30 of this year.”
And what does Cramer think at the moment? “While that call was mocked endlessly… it’s now looking more plausible,” he says.
“The homebuilders have scaled back operations to the point where now we’re building the same amount of homes as we had in this country with 100 million fewer people. That means less inventory.”
Cramer cited statistics that point to a bottom. “Housing starts down 48 percent, housing permits down 45 percent. Areas where prices have fallen 40 percent, they’re seeing a bottom.”
Bottom line, he says, “I think the June 30 housing bottom is spot on.”
Robert Toll, chief executive of home builder Toll Brothers, shares Cramer’s optimism.
“I don’t want to overstate it,” he said on Cramer’s show. “But I told you I’d give you a call when I saw things differently. And I definitely see them as different now.”
Another sign of strength: The Wall Street Journal reports that bidding wars have emerged at foreclosure auctions amid strong demand from investors and first-home buyers.
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