I recently came across this video of Mad Money Host Jim Cramer on Housingdoom.com. Unbelievably, he thinks home prices will actually increase in 2011. This prediction completely conflicts with the forecasts of most real estate professionals. I am personally convinced that prices of the majority of homes will continue to fall in 2011 when stockpiled distressed homes enter the market. In addition, demand for homes will not increase until the unemployment rate falls since people cannot purchase a home without a steady source of income. Without this increased demand for homes, recovery will be almost impossible. At roughly 9.5%, the national unemployment rate is still quite high. To say the least, I’m beginning to question Jim Cramer’s knowledge of the real estate industry.
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