The Timber Market is Growing Again

When Americans remodel or build new homes, that is good news for the timber industry and timber owners. Current trends are showing a great recovery ongoing in this lucrative market.

United Country has seen a 33% increase in sales of residential building lots in August and a 45% rise year-to-date. Numbers like these show a marked improvement in developers’ confidence in the housing market and can be attributed greatly to the increase in timber sales. This recovery in the housing market and demand for timber also means good news for timberland owners who have seen historically low timber prices during the recent recession.

The recession, coupled with better timber farming techniques and international competition have put downward pressure on timber value and hence timberland values. But recently this trend has been recovering and bolstered by both housing market improvements and recreational land demand.

There are other non-domestic factors that have contributed to timber’s recovery:

1. An ongoing mountain pine beetle epidemic in British Columbia that is having a devastating impact on harvest levels
2. Increased Chinese demand for American lumber needed for a housing boom
3. The growth of the U.S. wood pellet market that is playing a large role in assisting Europe with meeting renewable energy goals

So with a stable market, recovering demand and positive additional market factors, today may be the right time to talk to a qualified timberland realtor to discuss your property, an appraisal, proper land management issues and future prospects.