Did anyone else here what Jim Cramer said on the Today show?

By
Services for Real Estate Pros with Great American Title Agency

WOW! That is all I have to say about what I saw on the Today show this morning. I was awestruck by a comment made by Jim Cramer regarding the housing market. In case you missed it you need to go and check it out. Here is the website where you can access the video http://www.msnbc.msn.com/id/3032633/ go to the videos for this week and look for the one called "Cramer on the plunge in home sales" that will get you started.

I want to say now that I am not intending to discredit anyone or any company. I am simply looking for your reactions to this. How do the Realtors and Lenders feel about what has been said?

I guess my response is this; no wonder we are having such a difficult time, with this kind of negativity in the media how does anyone expect the market to turn around. I stood in front of my TV this morning, mouth open aghast at what was said. Then I started to do a little research on the video clip leading up to this one and other video clips since the first. I noticed a trend in his (Jim's) responses regarding the housing market and where his information is coming from. According to Jim, as I see it, he is talking to new home builders and Fannie Mae. Well I can tell you in Arizona that the new home builders are slashing prices sometimes by $100,000 to sell properties. So I suppose if your information is coming from new home builders and they are telling you that the market is dropping and prices are not giving way to profit then you would probably be right. If you haven't checked out the video yet still I urge you to do so. My reason...because the 2008 president elect for the National Association of Realtors, Charles McMillan (sp?) rebutted the comments made by Jim Cramer and I believe he had some great things to say. 

I am going to get off the soap box now but I would love to hear your responses to this. Thanks for taking the time to read my opinions.

Comments (9)

Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs
A lot or real estat is local and it will stay that way. We had some bubble markets that burst. Too many homes being built for people that do  ot want them. Numbers are an interesting thing and can be used to make points when thats not what the numbers are saying.
Sep 28, 2007 09:10 AM
Anonymous
Anonymous

I am a current prospective buyer. The way I see it, the media fed the over exuberance on the way up, and will feed the fear on the way down. Cramer is noisy, but he's right on this one. Better prices are coming.

Did real estate professionals complain that housing was getting too much attention as prices skyrocketed? I don't suppose so. No tears were shed for buyers who ended up overpaying.

Rapidly rising prices are good for business because it creates a sense of buying urgency. It can't be sustained, however, since incomes are the ultimate limiting factor.

All of the reactionary buyers have already bought, as have the speculators. We have burned through the imprudent consumers and now, unfortunately, agents are stuck with me and my ilk- hard nosed economic fundamentalists.

We are not the emotional buyers of 2004. We have been on the sidelines all along, through the whole boom, and have let the imprudent burn through their cash and clear the market.

I'm very ready to buy a house but I am forced to wait until prices return to a level that makes economic sense.

 

Sep 29, 2007 03:14 AM
#2
Karen Hubbard
Great American Title Agency - Gilbert, AZ
Escrow Officer

To the above commenter,

I suppose you are right. I hadn't given much thought to the perspective of a buyer. True that during the boom in price increases everyone in real-estate was excited and doing well, but why not. Business was great and things seemed to be looking upward. Unfortunately, hind-site is 20/20. Now we look back at 2005 and see what mistakes were made. People were so desperate for homes and because of the sub-prime loan market so many more could afford a home. However, right now is a good time for buyers. They can be picky about the properties they choose and because the prices have dropped it seems they will go back up in time. So if as a buyer you have money to put down and can be picky about the property you buy then the market is in your favor.

Unfortunately, the buyers that got into the market in 2005 are now shedding tears of remorse. They are losing their homes either due to adjustable mortgage rates and the inability to refinance or some other hardship such as divorce or loss of job. Many of the buyers in 2005 were uneducated about their loan programs (which I am now discovering due to short sales) and therefore did not understand exactly what they were getting into. Which in the past would not have been as much of a problem but now because they bought their home at an inflated price now they can't sell it for what they owe.

I would love to hear more feedback on this positive or negative. I think we need to hear all sides of the story right now to get a clear perspective. Keep the comments coming.

Oct 01, 2007 03:49 AM
Anonymous
John Marc

 

Jim Cramer is correct....prices are coming down - way down!  The price aberration on the way up was based on a ridulous loose money supply, fraud, no checks or balances in the mortgage, and real estate services sectors and because of all that a big bubble formed.  Its popping now and those who made the bad choice in buying the 400,000 dollar raised ranch that used to go for 95k a few years ago will have to suffer for it.......job losses should happen, and a slowing of the economy will be an end result.  What is amazing is how few realtors and mortgage brokers could not see this coming.  I mean really, people with no incomes were gettting 500k mortgages and the PR folks for the Realtors Association were telling people to buy now or you'll never be able to get a home.  I'm sorry, but the Realtors really mislead people and took advantage of the market for their own gains...........

Oct 01, 2007 11:23 AM
#4
Dionne Morgan
Realty World Solano Realty - Vallejo, CA
Broker REALTOR ,GRI, e-PRO

First of all this subject is much too complex for a simple response. I appreciate that you provided a link to the show. I am not a regular viewer. I did hear about it.  I strongly feel it is important that I prepare a post from my prospective as a REALTOR.

Oct 06, 2007 09:17 AM
Anonymous
Fisher

I don't know what kind of lunacy led to this run-up but anyone in Florida could tell you that homes which only 6 years prior were 45,000 were being sold as-is no less, for 300,000+.  In the greed and grab that was going on, everyone completely ignored common sense and intrinsic value.  

When the least intelligent people you know are managing to jump in and make big profits...PAY ATTENTION!  You are in a BUBBLE!  To be enraged that Cramer called it like it was and that the President of the NAR was LYING TO EVERYONE...because there is no conflict of interest there or anything...is to be in denial.

Everyone was greedy, everyone was in denial and now the piper will be paid.  Period.  For a while everyone will remember prudence, fiscal responsibility and "doing their homework" until the next enthusiastic train of hoo-haa whisks us away again.  Perhaps it will be the "green" trend, who knows?

Regardless, it's always most important to remember to research things, do your homework, trust your gut and educate yourself rather than relying on talking heads of any kind.  Few have an "agenda-free" motive to being talking heads.

 

 

Jan 01, 2008 03:22 AM
#6
Jason Wheeler
JasonWheeler.biz - Pleasant Hill, CA
JasonWheeler.biz
Jim Cramer is mostly an entertainer and I would take almost anything he says as speculation.  Although he is pretty fun to watch!
Jan 02, 2008 03:29 AM
Joseph Grabowski
Keller Williams Preferred Real Estate - Yardley, PA
REALTOR - 4saleinbucks.com

Karen - I do agree with Cramer for the most part. Most people shouldn't be buying homes right now unless they NEED to.

You quote: "no wonder we are having such a difficult time, with this kind of negativity in the media how does anyone expect the market to turn around." Negativity in the media has not caused what is going on in the real estate market. Truth of the matter is that the biggest incline in housing prices, will be followed by the biggest decline.

And I think Charles McMillan did a horrible job answering Cramer's questions. Charles sounded like a parrot, repeating exactly what NAR wanted him to. Sounded completely rehearsed.

 

Mar 04, 2008 08:30 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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