Looking forward, U.S. housing starts continue to show strong recovery, especially in the South. This trend is expected to continue as evidenced by strong upward performance of new building permits, and has historically correlated to demand for lumber, and therefore timber prices. We expect to see growth in the timber markets as housing continues to climb, barring any market correction.
Southern timberland real estate asking prices rose this quarter to just over $2,050 per acre on average. Tracts fewer than 1,000 acres continue to sell at a slight premium over larger tracts.
Bottom Line: We are still waiting for timber markets to respond to the ever-improving housing recovery. Volatile stock markets and global uncertainty continue to affect investor confidence. Even so, timber markets and land sale markets have held steady in general over the past year and continue to show a growth in demand for quality timberland properties.
For an in-depth analysis of your timberland property, or to discuss how timberland can improve your portfolio, please Contact Us today to discuss.