The comments sparked criticism from some members of the National Association of Realtors, who called his remarks “misleading, inaccurate, and inappropriate.”
But Cramer is far from alone in raising warning signs about the current housing market.
Los Angeles-based homebuilder KB Home painted a painful picture on Thursday of what the market looks like from the company's perspective.
"The oversupply of unsold new and resale homes and downward pressure on new home values has worsened in many of our markets," said Jeffrey Mezger, president and chief executive of KB Homes, in a press release.
Mezger said his company is cutting prices to sell more homes from its bloated inventory.
Earlier this month, another big homebuilder, Hovnanian, took the unusual step of having a weekend fire sale of its homes in several markets around the country, slashing prices by up to 25%.
Prices May Keep Falling
Eugenio Aleman, a senior economist for Wells Fargo, said he expects prices to continue falling because higher mortgage rates will discourage buyers.
“It seems to have confused investors and individuals that home prices are going up always, but that is not the case,” Aleman said.
Despite the Federal Reserve's surprise rate cut earlier this month, mortgage rates have continued to go up, Aleman said. And as mortgage rates rise, home prices generally fall.
“That is the reason people have stopped buying and stopped fixing or improving their home,” he said.
There are, of course, parts of the country where home prices are still rising, as realtors are quick to point out. Even so, you might be better off investing in stocks right now than buying a house.