Timberland Prices Rise and Fall, but Ultimately Return to Trend
Posted by Forest2Market.com
In June of 2011, Pete Stewart wrote one of Forest2Market’s most popular blog posts to date titled “Are $350 per Acre Timberland Prices around the Corner?” He had just returned from a beach vacation and the blog post focused on some of his observations about coastal housing prices and the trends he recalled over a period of years. He then drew a correlation between trends in coastal vacation properties and trends in timberland pricing, and he found a number of interesting similarities.
However, the economic theory that all pricing returns to trend line proved to be the most significant market dynamic that Pete observed in his comparison. While it is an important concept generally applied to commodity pricing, it can be applied to other pricing trends as well.