Living Conditions: The family lived in a small wooden house. This suggests that their living conditions were likely modest, possibly indicating a lower socioeconomic status. The house being on the edge of a great town might imply that they were either on the outskirts due to space or cost, or perhaps that they were not fully integrated into the bustling life of the town.
Relationship with the town: Living on the edge of a 'great town' could mean they were a part of it, but perhaps in a less central or affluent area. It could also suggest a degree of separation from the town's main activities. The phrasing doesn't explicitly state their interaction level, but their housing suggests they were not among the wealthiest or most centrally located residents.
Overall: The description paints a picture of a family living a simple life, connected to a larger community but likely not at its center, in a dwelling that reflects their material circumstances.