Bill Wheat: And Eric I think its just €“ I think it’s just indicative of the entire industry and lessons learned in the last downturn. I mean I do believe that there is a discipline around the industry, and it’s not just short-term, chase every market every day. So it’s — we’re trying to do a lot in inventory levels with demand. And it ultimately comes back to if you look at the long-term position of the industry, there aren’t enough lots for houses for the population and demand that we see taking place over the next three to five years.
Eric Bosshard: Okay. And then related to this, the inventory per community number, it looks like it’s up. And I guess the follow-on would be the path forward with starts from here is down 40 a pace you maintain for another quarter and then lift your heads up, or how do you think about the pace of managing the supply path going forward?
David Auld: I think we saw the starts kind of align with our sales pace in the quarter, and I think we’re going to look to try to maintain that relationship through this time of the year as we’re seeing good sales demand in the early spring selling season, we’ll be replacing those homes with new starts to continue having inventory in the shelf available to sell. We are certainly seeing more homes selling later in the construction process, certainty of delivery date, certainty of mortgage rate and payment are big important factors for our buyers. And we’re also focusing very heavily on recovering our housing inventory turnover metrics and getting more efficient with those inventory dollars. Got to get our returns back up on our housing inventory.
Jessica Hansen: And so as with everything, our starts are managed community by community, market by market by our local operators to focus on not piling up excess completed homes that have been sitting there for an extended period of time.
Eric Bosshard: Okay. That’s helpful. Thank you.
Operator: Thank you. And the next question is coming from Anthony Pettinari from Citi. Anthony your line is live.
Anthony Pettinari: Good morning. Can you talk about the tenure of buyers who canceled this quarter? Were those contracts that were signed in fiscal 4Q or maybe even earlier? Is there a larger cohort of buyers who may be placed orders in the fall, but are still at risk of cancellation with rates rising? Just wondering if you can give any color around kind of cancellation trends there?
Paul Romanowski: I think as you’ve seen, our cancellation trend moderate and cancellation rate moderate, we have younger backlog that have signed contracts more recently. As Mike spoke to, certainty of home close date and mortgage rate is very important. So, as we have cycled through and we’re improving our housing inventory turns, I think that’s where you’re seeing our reduction in cancellation rate.
Anthony Pettinari: Okay, that’s helpful. And then just in terms of renegotiating prices for homes in backlog, has that sort of normalized or died down now that rates have stopped rising and to your point, cancellations have come down?
Bill Wheat: Hopefully, with the rate stabilization we’ve seen — we’ll see stabilization in incentives and pricing environment going forward.
Anthony Pettinari: Okay. That’s helpful. I’ll turn it over.
Operator: Thank you. The next question is coming from Buck Horne from Raymond James. Buck, your line is live.
