The last four years have been the most economically volatile of my 36 year career in the land investment and management business.
For example, prices for rural land in Alabama have plunged deeply after 15 years of dramatic gains. Prices for southern pine sawtimber have dropped to levels not seen in 20 years as new housing starts have fallen by 70% since 2008.
The amount of rural land changing hands in Alabama has drastically fallen as both buyers and sellers sit on the sidelines waiting to see how the dust settles on our economy.
So it was with great interest that I read an article this week on the investment web site Seeking Alpha, expressing optimism about the near future of timber prices. A couple of excerpts:
“With positive signs that the housing market is starting to recover and the possibility of higher inflation in the coming years, income investors should take a look at REITs specializing in timber.”
“I believe the next few years will be very bullish for lumber and timber prices.”
If timber prices show significant improvement, can demand for land be far behind?
Yesterday a man I know told me, “when things are good people always think they’ll never go bad. When things are bad people always think they’ll never get better”.
How true for both the dramatic price increases and declines we’ve seen over the past 20 years!
So, if you’ve considered purchasing rural land in Alabama but have been sitting on the sidelines, perhaps it’s time to start shopping. Contact Cyprus Partners today and learn more about how can help you shop for your dream property.
Landowner question: Q: I’m about to thin my planted pines…