Jim Cramer told fans of his “Mad Money” TV show Tuesday that he thinks the housing market will bottom in the third quarter of 2009. Cramer said he thinks the rebound is coming after he looked at the charts of the seven largest home builders, Toll Brothers (TOL), Centex (CTX), D.R. Horton (DHI), Pulte Homes (PHM), Lennar (LEN), MDC Holdings (MDC) and KB Homes (KBH). He said all the stock charts peaked one year before the housing market topped. Now he says the charts for the housing stocks have bottomed last month. Cramer listed 10 reasons for why the housing market will rebound in the third-quarter of 2009:

1. There are far fewer homes being built now than in 2005.
2. The $300 billion Federal Housing Bill is helping homeowners avoid foreclosure.
3. Home prices have come down to bargain levels (as much as 30-40% in some areas).
4. The hottest housing markets are starting to cool off.
5. Mortgage rates should decline once Freddie Mac (FRE) and Fannie Mae (FNM) are nationalized.
6. The bulk of “teaser rate” home loans have reset and foreclosures will now decline.
7. The rate of household formation will increase as thousands camped out in apartments can now afford homes.
8. Immigration levels should rebound after the November election.
9. The biggest problem areas are now contained in such problem states as California, Florida and Arizona.
10. The areas with the highest foreclosure rates are starting to stabilize. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!