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Real Estate Weekly, October 10, 2007
By Daniel Geiger
The often raucous "Mad Money" host Jim Cramer ruffled feathers in the residential real estate industry last week when he announced on the "Today Show" that the entire sector was essentially in the tank.
"Don't you dare buy now, you'll lose money," Cramer insisted to "Today Show" host Meredith Vieira. "Seattle is up, that's it."
Cramer's comments were hardly revelatory considering the stream of almost daily updates on the nation's sputtering housing market. So then perhaps it was the theatrical vehemence with which he usually delivers his tirades that drew the ire of industry groups, including the National Association of Realtors, who challenged Cramer on his assertions.
"The National Association of Realtors is saying that this is a good time to buy," Cramer shot back in a follow up interview on CNBC, alleging to the association's bias. "Maybe they've said it for three more years than they've been in existence."
All the ballyhoo is sure to drum up even more interest in an opportunity being offered by the foundation, Joan's Legacy, in its efforts to raise money to fund research into a cure for lung cancer. Among the unique prizes that bidders can compete for at the foundation's upcoming fundraising auction is a chance to visit the closely guarded set of Mad Money and have an off camera chat with Cramer, something that many in the real estate industry may now be especially eager to do.
While Cramer's broader point about real estate may arguably be correct, some are irked that he didn't mention Manhattan's strong residential market along with Seattle's as an area where values having seemed to be receding.
"After hearing Jim Cramer say the sky is falling for real estate everywhere, I hope someone in from our industry ends up winning this prize and has the chance to set him straight when it comes to home sales in strong markets like Manhattan," said Adrienne Albert, national director of The Marketing Directors, a residential marketing and sales agent in Manhattan. "Jim Cramer is loud, but he's also wrong about real estate in this region."
Some speculate that such a conversation would amount to more than just an inconsequential tete-a-tete and that particularly convincing winner might convince Cramer reference the city as a notable exception along with Seattle to his gloomy forecast for the residential market.
Joan's Legacy is named after Joan Scarangello McNeive, the sister of CB Richard Ellis's New York CEO Mary Ann Tighe and Thornton Tomasetti managing principal Thomas Scarangello, who lost a nine-month battle with lung cancer in 2001. Joan Scarangello McNeive was a non-smoker and the foundation's special focus is on non-smoking-related lung cancer.
The auction will be held on Thursday, Nov. 8 from 6:30 to 9:30 p.m. at The Allen Room and Atrium of Frederick P. Rose Hall in the Home of Jazz at Lincoln Center. Bids can be made online at www.joanslegacy.org or in person at the event. For more information call 212-627-5500.
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