Strong Rebound In New Home Construction Cause For Excitement By Sawtimber Growers

The impressive increase in new home construction that began in the latter part of 2012 may bring stronger demand and higher prices for growers of large, high-quality trees sought by sawmills for production of lumber.

Marshall Thomas, president of F&W Forestry Services, a leading U.S. forestry management and consulting firm, reports in his company’s newsletter — the F&W Forestry Report — that new housing starts in December were up 32 percent from last January 2012 and a “whopping” 77 percent above December 2010.  “Those are the kind of numbers that should get a tree grower excited,” Thomas wrote.

“It’s not unreasonable to believe that we are at least at the bottom of the latest housing cycle and things are about to get better for sawtimber growers,” Thomas said.

Thomas also reports on timber prices and markets across F&W’s service areas encompassing much of the forested areas in the U.S.  F&W also operates in South America.

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