Replies to post #8451 on The Rising Influence of Rising Affluence

[DewDiligence]

(PCL/RYN)—More color on the improving US housing market:

http://online.wsj.com/news/articles/SB10001424052702303908804579565633294609054

Much of the demand for new homes has been coming from upper-end buyers rather than those purchasing their first home. The median price of a new home rose to $290,000 in March, the highest level on record, as builders targeted wealthier borrowers… Many first-time buyers, who may have blemishes on their credit records, have a hard time getting a mortgage, so builders have been focusing on larger, more expensive homes.

For timber companies such as PCL, larger homes are more bullish than smaller ones.