Alan Ratner: Hey, guys. Good morning. So, very impressive progress on the cycle times and the cost front. I’m guessing what we are seeing now is probably somewhat of a lagged effect of the big pull back in starts the industry saw late last year and the negotiating power you had over the trades at that time and, of course, the pull back in lumber. You are not the only ones ramping your start pace now. I think we are hearing similar messages from most of your larger competitors. Maybe some of that is at the expense of the smaller privates, but I think it is clear the industry start pace is going to be accelerating here for the next handful of quarters at least. So, what are your thoughts on the sustainability of the progress you have made on cycle times and costs heading into ’24?
And more specifically, what are you seeing from your trades? Are they ramping their headcount in anticipation of an accelerating start pace going forward? Are they seeing more capacity out there that would support this type of growth without cost inflation following?
David Auld: Yes, it’s something we work on every day. Aggregating market share involves aggregating trade base and materials within those communities. And we’ve been talking about a consistent start pace when we’ve been talking about simplifying the process and making it easier for our trades to get to and from the job with the right materials, with a complete understanding of what they’re doing. That is allowing us to aggregate these trades. Our goal, our communication is we want to be the builder they want to work for. And we do a lot of things to try to make their job easier and more profitable without coming in and trying to renegotiate price every quarter. So, is it sustainable? Yes. I think that we are going to continue to focus on that. And as time goes on, we’ll get better at it, and basically build capacity month-to-month, quarter-to-quarter, on a continual basis.
Alan Ratner: Got it. Appreciate the thoughts there. Second, Jessica, you mentioned earlier that while you’re still offering mortgage rate buydowns on the majority of closings, it did tick a little bit lower quarter-over-quarter in terms of the share of closings that had those buydowns. I was curious if you — a, if you had that specific data you could share with us? But, b, are you seeing any sensitivity to demand in the communities maybe where you are dialing back those buydowns? On one hand, the buydowns are probably putting you guys in such a strong competitive advantage versus the resale market. But on the other hand, with inventory as tight as it is and demand seemingly pretty strong, it would seem like you should have some ability to pull back on those without impacting demand too much. I’m just curious the interplay between that.
Paul Romanowski: The use of the rate buy downs is about 10% less than it has been as we look over the last few quarters. And that sensitivity is a community by community and buyer by buyer process. We have great sales agents in each of our communities that go through that experience with every buyer that walks in and finding what’s important to them is what they do very well. And so, we’ll continue, as we mentioned, to utilize that. And certainly that reduction shows some stability in rates. Although they’ve moved up, they’ve remained in a similar range. And I think people getting comfortable with their purchasing power has allowed some of the relief of that use and/or them not being as concerned about it as the thing that is important to them in the purchase.
Alan Ratner: Great. Appreciate the color. Thanks, guys.
Operator: Thank you. The next question is coming from Truman Patterson from Wolfe Research. Truman, your line is live.
