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Here's What a Bottom in Housing Means

By Jim Cramer

 About this article:
 Fannie Mae auctions properties at 50 cents on the dollar. Buyers are found for no-nauction purposes when houses come down 40%. With that, you get classic supply and demand kicking in. And you get a bottom. This morning's excellent article on Bloomberg.com highlights the success Fannie is having auctioning off even unfinished property. The propensity is to say, "speculators are buying," but the simple truth is that there are multiple buyers at these levels, and if the speculators pay more that's because they sense bargains. Why is this so important? Look at Wells Fargo -- foreclosures is the issue. Same with JPMorgan . If you get any sense that housing prices might be bottoming, all of that upside-down mortgage stuff will go away. We are getting some relief at WFC with mortgage applications up 158% -- another sign of a bottom -- and I am still...

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