CNBC's Jim Cramer Says "Buy A House - NOW!!!"

By
Services for Real Estate Pros with Liberty Mutual

Let's face it, CNBC can be pretty boring for most folks. But interesting personalities like Jim Cramer take the relatively mundane topic like stock performance and economic conditions, mix it with an exciting "ESPN SportsCenter-esque" format and it is tolerable. And it works, Cramer has tons of followers - almost a cult like following.

So Cramer's Mad Money show has a pretty big influence. Today he stated "I was the first guy that said torch your house for the insurance money (8 months ago). I am now telling you that between now and the next six months you have to buy a house."

Cramer went on to site several big banks better than expected earnings reports and the new housing bill's $300 - $400 billion in FHA loans for home owners currently in exotic loans. He clearly is stating the bottom is in site - now is the time to buy low.

So if any of your clients need the advice of an expert - and I'm not expert enough for them ;) - then tell them Jim Cramer wants them to buy a house - NOW!!!

Jim's "Mail Bag" segment:

http://www.cnbc.com/id/25818021/site/14081545/

MSNBC Segment - 11+ Minutes

http://www.msnbc.msn.com/id/21134540/vp/25812854#25812854

 

Comments (20)

Lori Lincoln And Associates
Top Agent Serving Dighton Taunton, Rehoboth and more! - Taunton, MA
Top Agent Taunton,Dighton Rehoboth &more

Jim Cramer will probably have a video blog on the CNBC website about this. I'll look for it

Jul 23, 2008 03:27 PM
Mary McCleskey & Michelle Gumeny
Assist-2-Sell, Home Buyers & Sellers Realty, Inc. - Acworth, GA

I love to hear positive news for once. I am so tired of the negative news all day long. Thanks for sharing!

Jul 23, 2008 03:29 PM
Mike Russell
Mike Russell & Associates - Overland Park, KS
Overland Park Kansas Real Estate

Cramer trying to unring the bell. His prior comments were pretty brutal. I guarantee there will be a lot less coverage of his retraction.

Jul 23, 2008 03:30 PM
Kevin Michelson
Liberty Mutual - Nashville, TN
MBA, Nashville Insurance

Jim's "Mail Bag" segment:

http://www.cnbc.com/id/25818021/site/14081545/

Jul 23, 2008 03:30 PM
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

It appears some of them are taking his advice our market is doing better.

Jul 23, 2008 03:43 PM
Kevin Michelson
Liberty Mutual - Nashville, TN
MBA, Nashville Insurance

Even better video...  great discussion on Real Estate, the economy and the new housing law featuring Jim Cramer.  Over 11 minutes but GREAT discussion

http://www.msnbc.msn.com/id/21134540/vp/25812854#25812854

Jul 23, 2008 03:53 PM
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

Interesting, bu typical Cramer to endorse an underdog like the housing market. It will create a spike or a small wave because of the CNBC effect. I do watch Cramer's show and read his comments, however since I lost over $25k last year following his advice, Im more interested in tracking his results for the year before following again.

Jul 23, 2008 04:02 PM
Kevin Michelson
Liberty Mutual - Nashville, TN
MBA, Nashville Insurance

Mike-

Sorry to hear that Cramer's advice has hurt you! I hope he doesn't do it again here.

I watch CNBC for opinions - and there are TONS of them. But I can't help but think that every speaker has an agenda. Host, CEO guests, traders on Wall Street - they are all pushing their positions.

So does that mean that Cramer is buying the big home builders and brokerages? At some point they will be a good stock play - does he thing we are there yet?

Sounds good to me!

Jul 23, 2008 04:21 PM
Lewis Poretz
Apex Home Loans - Annapolis, MD
Business Development Manager

Hey Kevin -  I want to buy a house.....  

Can you tell me how that Ameridream program works??   What? It's not available anymore? But I have no money for a down payment!!!!

 

Jul 24, 2008 12:10 AM
Kevin Michelson
Liberty Mutual - Nashville, TN
MBA, Nashville Insurance

Lewis-

I'm not a huge fan of Ameridream and other DPA's. I've used them, but they can create a home owner who doesn't have the owernship mentality - not always, but sometimes. We're in a back to basics market - down payment is required.

Here're the facts, as I know them, about DPA going away - you'll have until Oct 1 to have a credit decision from FHA. After that, they are no more. Of course, there will be a legal battle trying to block it. However, I suggest you investigate alternatives now. And they are out there.

The new law does NOT kill the abilit of someone to get a gift - it just can't come from an interested party such as the seller. Non-profits are still allowed to contribute. Here in Nashville there are some great alternatives - they typically have an income limit but will provide up to $25,000 for DP and Closing Costs. Some are 0% due on sale seconds, others are Community Seconds with a monthly payment. All have a 1% borrower requirement. What about their church or employer? Still within guidelines.

So DPA's departure will hurt the market - in the short term. Lenders, investors and overall markets don't need to create more of a mess with borrowers that go bad - and DPA borrowers default at a higher rate than those who don't use DPA.

Remain "Open-Minded" and find local program alternatives. :)  Clients and Realtors will flock to you because you're the expert. Any monkey can do a DPA deal - not everyone has the alternative to DPA.

Jul 24, 2008 12:22 AM
Lewis Poretz
Apex Home Loans - Annapolis, MD
Business Development Manager

I hear you Kevin and I agree with you. But I must ask -  100% financing getting the money from the seller through a DPA, getting the money from mom and dad, getting the money from your boss, getting the money from the state or county  -  what's the difference? 100% is 100% percent......  

Jul 24, 2008 12:26 AM
Kevin Michelson
Liberty Mutual - Nashville, TN
MBA, Nashville Insurance

3% from a stranger to make the deal happen is different than 3% from Mom and Dad. Thanksgiving will never be the same knowing you walked away a home that Mom and Dad shelled out several thousand for.

Shafting your boss - have fun at the water cooler. I'm sure that won't hurt your upward mobility.

State or county - most will be a recorded second, they may have some recourse.

Bottom line is the seller's money leaves you with no ownership mentality and artificially inflates prices (have you ever had a contract rewritten to increase the sales price and accomodate the DPA?).

Respectfully disagree on that all 100% is created equal.

This change WILL hurt, but neither of us are going to stop it. Remember when everyone went nuts about 80/20 going away - we just have to deal with it. I do a Realtor seminars all the time on these alternatives - they LOVE it. I'm the expert on the topic and it turns into business for both sides. Embrace the change, evolve or die.

Jul 24, 2008 12:37 AM
Lewis Poretz
Apex Home Loans - Annapolis, MD
Business Development Manager

Very well put Kevin. Embrace the change -   ain't that the truth! What else can you do??

Jul 24, 2008 12:42 AM
Kevin Michelson
Liberty Mutual - Nashville, TN
MBA, Nashville Insurance

Certainly can't sit around saying "I remember when you could do 100% with only a credit score." It ain't coming back any time soon - maybe ever. (stay tuned about 10-15 years, markets have poor memories when there is money to be made)

Is it harder to make money? ABSOLUTELY. But it really was too easy back then. Answer honestely, you'll probably agree.

There are still thousand of homes to be bought in the next 6 months in your market. How many are you going to finance?

And, oh yeah. Today's higher (mid-6's!) fixed rates are still better than your past customers taking that ARM adjustment. Mine that database, grab some purchase, put off that Hawaii vacation, let Jim Cramer keep pumping us and NEXT summer will be so much easier.

Jul 24, 2008 12:51 AM
Lewis Poretz
Apex Home Loans - Annapolis, MD
Business Development Manager

Kevin -

I agree with you last post 100%. You are right on and plugged in to the market. You my friend will be a survivor!  Best of luck!

Jul 24, 2008 12:56 AM
Larry Brewer - Benchmark Realty llc
Benchmark Realty LLc - Nashville, TN

Kevin - You are right. If Jim says the bottom is here, he's already seen it, and it's on the way up.

Jul 24, 2008 01:02 AM
Kevin Michelson
Liberty Mutual - Nashville, TN
MBA, Nashville Insurance

Fingers, toes, whatever else I can find. They're all crossed!

Jul 24, 2008 01:05 AM
Anonymous
poncho

 

You need to get your synonyms straight if you going to publish a blog.  Hire an editor.

Jul 24, 2008 01:19 AM
#18
Lewis Poretz
Apex Home Loans - Annapolis, MD
Business Development Manager

synonyms  ----- Poncho   we is mortgage and real estate people  NOT English majors....   why so harsh?

Jul 24, 2008 01:25 AM
Kevin Michelson
Liberty Mutual - Nashville, TN
MBA, Nashville Insurance

Poncho-

Thanks for checking in and representing the Associated Press Style Book.

Didn't your Mother every tell you that if you don't have anything nice to say, then you should blog it somewhere else?

Jul 24, 2008 01:27 AM