Response to Mad Money’s, Jim Cramer’s comments about real estate on the Today Show

Response to Mad Money’s, Jim Cramer’s comments about real estate on the Today Show:

Jim Cramer is as sharp as they get when it comes to stocks but missed some basic points about real estate.

Buying real estate is not like buying stock. You don’t buy houses low today and sell them high in a few days. Buying a home is a long term vision. How long term depends on your situation and the local economy.

My advice to buyers:
1) Look at your situation. If you are only going to live in the area for a year or so, buying a house may not make sense. If you are going to own this next home for 3 or more years it begins to make more sense in a normal market.

2) Talk with your local Realtor. They know the market history, they know the current inventory and they know the current influences on today’s market in their area.

Generalizing about the real estate market in the United States is as dangerous as generalizing about stock investments. I think even Jim would agree that in a bear market there are still specific companies or sectors that are doing well and would be a good investment even though a large part of the market is down.