And so we have some of those. As far as development deals that we are developing, those — depending on municipalities and timelines, Alan, is, I know you know these answers or — but they’re anywhere from 12 to 24 months generally before they start development and then you go from there. So it’s kind of an all across the board structure on the land, but we feel really good about the control positions we have. They’re in the markets we want them to be in. The higher growth markets. Some of the markets Dale alluded to on this call, and we feel really good about them.
Alan Ratner: Right.
Robert Francescon: And one just last thing, you also asked about distress. We have not seen any significant distress in the market. We are seeing things open up a little bit where financing’s being tighter for the privates. They’re not able to compete. It’s really competition against public to public and so certain things are opening up, but as far as distress, I wouldn’t go that far yet.
Alan Ratner: Thanks very much. Appreciate it.
Robert Francescon: You’re welcome.
Operator: The next question is from Alex Barron with Housing Research. Please go ahead.
Alex Barron: Yes, thank you. Yeah. I was curious if you guys could tell us how many homes you started this quarter? That’s my first question.
Dale Francescon: Yeah. This quarter, in terms of the starts, we did 2,434 homes. So we’re pretty much matching what we’re doing from a sales pace.
Alex Barron: Got it. Yeah. My other question was, last year, I think several builders engaged in trying to find the market clearing price, and obviously that had an impact on margins. This year it seems like everybody’s focused on buying down rates instead, which I think is probably healthier. I’m just kind of curious if — as we’re approaching year-end, are you — do you believe that’s likely going to continue to be the case or are you starting to see some of that activity of people trying to compete on cutting prices?
David Messenger: Well, I guess we’ll see as we get closer to the end of the year. Right now, the incentive that buyers are most interested in is to have a below market interest rate. And I mean, you can certainly see why it dramatically lowers their cost of ownership. And so that’s where our focus has been. And as we look at our competitors, that’s where their focus has been so far as well.
Alex Barron: Okay. Well, hopefully we’ll keep our fingers crossed that it stays that way because it seems like a more rational way to compete, I think.
David Messenger: Yes.
Alex Barron: And — yeah, other than that, do you believe in general that because you said you expect growth in units for next year, so do you believe you’re just going to — that’s going to happen based on growing community count, but maybe slightly lower sales space?
Dale Francescon: That’s tough to say. We think that we’re well positioned, we’re well positioned today that if — call it a 250 to 260 community account going into next year, given our current sales basis, we feel good about being able to deliver those homes. We’ll comment more on future guidance when we get into our fourth quarter call and we may have a little bit of a better flavor on what we think absorption will be next year by then.
Alex Barron: Got it. Okay. Well, best of luck guys. Thank you.
Dale Francescon: Thank you.
Operator: The next question is from Michael Rehaut with JP Morgan. Please go ahead.
