Thursday, December 18, 2008

Jim Cramer is Buying Houses

I don't usually post about the national scene. But here's a nice local analysis on Mr. Guru Jim Cramer's thoughts on CNBC's Mad Money from the Lake Geneva Real Estate blog.
I had just commented on Sam Zell's rosy housing outlook at the other day. Now here's Jim Cramer coming out from under the rock... for homes.

All I know is I'd be in this Chicago market for a primary home for my family if I hadn't bought a place we love just two years ago. I did, however, try to buy an investment property in Chicago... and lost in a multiple offer. Nuts.
And, I didn't have to wait for Jim Cramer to tell me.


kbr7171 said...

Jim Cramer a guru? Google his track record. It under performs every index.

Why is it that every realtor I've seen, heard or read tells me real estate is local but now two of you, youself and the Lake Geneva blogger, are telling me I should listen to a cartoon character with a bad market record about buying a home. Has he surveyed EVERY market? I know the answer to that question is no so why should I take his advice in Chicago?

I'm glad to know that you and your family feel secure enough in their finances and employment status that you'd be in the market for a home if you hadn't bought recently but realize your sentiments do not reflect the average American.

Hell, I have tens of thousands in savings but I'm not in the market. Why? Because I have to be realistic regarding this economy and the fact that perhaps my job might be eliminated. I see no benefit in laying out much of my savings, that I would rely upon in the event of an extended job loss, for real estate.

Do you dispense your advice about being in the market for a home based on optimism that the trend of declining values will end soon? I know you saw the 60 Minutes piece regarding the $1.5 Trillion worth of Alt-A and Option ARM's that are reseting between now and 2011. Does that assuage your optimism? I know the focus of that piece was in Florida but to believe many of those loans aren't in Chicago and won't affect the local market would be Pollyanish.

Locally, we were repeatedly told by experts that our market was not leveraged with sub prime and specualtion and therefore would not feel the pain of a housing crisis. Those experts were wrong. I would suggest people stop listening to experts and become their own experts by assessing their individual situations.

Eric Rojas said...

First, I used Jim Cramer's name to get blog hits and to link to another Realtor's blog because it make's sense for me to do that. Go roast him.

And no where do I say or advocate "go buy homes because Jim Cramer said so" (just like he said not to a little while back). In fact, I quip rather cleverly I didn't need him to tell me to buy a house.

Second, you like to write one sided comments often without much engagement or context to my analysis.
I'm not optomistic, but simply working with the reality of buying and selling homes... good and bad.
I'd buy now, some would buy now, some are scared shitless... some can sell and make money, some can't give their homes away.

Third, don't dump me in with every Realtor. I have a long running blog, comment and write on other sites, references, an office, a phone number and email where people can check me out and decide by my merits if I'm helping them.

Fourth, I'm interested in helping buyers and sellers that need and want to buy and sell real estate. Everyone has their own reasons and may not choose to sit out (or have the luxury of sitting out if selling) like yourself. Many come to me to buy a place and when they get the real story of what's out there relating to them... sit out. Good.

Somehow you read the post, and my past posts (one where I refute Sam Zell's rosy prediction by pointing out the said 60 Minutes analysis and one where I state it is a disaster for some of my clients) yet you post the same old rant like I have no perspective.

I rarely comment on the national scene nor state general city-wide "metro area" real estate statistics. When I do state them, it's concerning a specific housing type in a specific neighborhood in Chicago.
And, in Chicago, I have sellers who need or want to sell and buyers who would like to find a fit for themselves. That's what I'm concerned about.

I agree there are plenty of people in Chicago that are having trouble and will have trouble with their loans and re-selling their home. That you lump me in with "experts" that say this is not the case is another reason your comments are too general and attempt to imply I've made statements in which I have not.

Mostly, I sell primary homes where people themselves want to own for many reasons and do not look at the purchas purely as an investment.
Lately, I have addressed investments more because banks have been setting some home prices so low for nice condos in solid buildings, units/buildings sell in multiple offer bids. Combine that with interest rates under 5%, I have a lot of people interested in investments with the same data as you and me moving ahead with purchases. These are still mostly primary homes and my clients find these "deals" are far and few between and take some strong stomachs to get to the closing table.

The second half of 2008 has brought overwhelming bad news every day. In my reality, and others I work with, I'm open for business in buying and selling real estate and have a lot work to do. Screw Jim Cramer.

Thanks again for reading... and lighten up. There are many other web sites and Realtors that are begging people to buy homes that you could harass.