Below, our friends will note U.S. hardwood grade lumber prices have begun to rebound, following the significant correction during the latter half of 2022. This chart follows two separate baskets of hardwood grade lumber species. Although it’s reflective of general regional trends, demand for standing timber on your individual parcel of land – or for a given species – may differ widely from the broad trends illustrated here. You’ll also note the 22-year historic trendlines rarely exhibit a “false bottom”. Thus, it would seem the recent up-turn has some legs.
Prices across the natural resources and energy sectors have generally declined since mid-2022 in response to slower overall economic activity in the latter part of 2022.
Correspondingly, the pace of inflation (CPI) has slowed during the same period.
Recently, we’ve seen a slight increase in the overall economy, as of the last BEA information release. Thankfully, our region’s hardwood standing timber prices tend to hold up well through all manner of economic cycles, as shown below.
For dependable, seasoned advice on forest products markets, contact your friends at FORECON to help you and your team make more informed decisions for your unique property.