This Tech Stock Is The Key To America’s $1.9 Trillion Housing Boom

The United States' white-hot housing market is spawning some eyebrow-raising knock-on effects up and down the market.

Take lumber futures, for instance. They recently hit a record $992.40 per thousand feet – a 49% climb in about three weeks.

Those are tempting gains, no doubt, but I'm not here to suggest we start trading lumber futures – though it certainly draws a line under the power of this boom.

As always, I think the serious money is in a decidedly more high-tech approach. The profits in the stock I'm about to name should put lumber's double-digit gains in the shade.

These folks have already grown earnings 248% during the boom, but as we speak, the company is executing a savvy move to reposition itself to capture an even bigger chunk of the housing bull's windfall profits…

This Boom Is Generating Staggering Numbers

The coronavirus pandemic has sparked an immense housing and remodeling bull market.

Millions of people are spending more time at home and, perhaps tired of the same four walls, are staging more DIY and home improvement projects themselves, as evidenced by Home Depot and Lowes' performance in 2020.

But on an even bigger scale, homeowners are looking to relocate now that telecommuting has become the norm. Others see historically low-interest rates as a reason to pull the trigger, making real estate an appealing alternative investment "kicker" to high stock market returns.

Whatever the motives, according to the National Association of Realtors, sales of existing homes in January grew by 0.6% from December. That might not sound like a lot, but you have to bear in mind economists expected sales to fall by 2.4% instead.

So, while the month-to-month increase in January sales wasn't large, the annual increase tells the true story. At 6.69 million homes sold, adjusted for the season, this January's sales were a stunning 23.7% higher than January 2020.

What this means is a housing market the likes of which we haven't seen since 2006. But a similar 2009-style housing crash is unlikely to happen again. The quality of mortgage debt is higher, buyers have higher credit ratings these days and are generally more liquid, and realtors report it's not uncommon for folks to show up with 30%, 40%, and even 50% of the purchase price to put down.

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