Carl Reichardt : That’s a very comprehensive answer. And then obviously, we talked a lot about Trophy, how it’s performing, what the customers there are seeing. Can you talk about the business sort of the second move-up and some of the segments of the business that you addressed that a lot of the other public builders don’t on the higher end and how those communities are performing, what your customers are seeing and doing?
Jed Dolson : Yes, I’ll take that, Carl. This is Jed. We’re seeing very strong demand for the infill locations in the second and even third time move up. So we’re seeing — we’re seeing far less incentives at those price points and very continued strong demand. Those houses are not as easy to build as the lower entry-level Trophy homes, so they’re more complex. So we’re happy with the sales pace that we’re selling those homes at today.
Richard Costello : And Carl, interestingly our — this is Rick. Interestingly, our deposits are still real strong there. And we’re seeing probably twice as many cash deals as we did before as buyers are recognizing, hey, this is like getting a 30-year 8% CD. So there — they have the capability of selling assets or already in cash.
Operator: Your next question comes from the line of Alex Rygiel with B. Riley Securities.
Alexander Rygiel : Nice quarter, gentlemen. A couple of quick questions here. First, can you talk a little bit about sort of the net new community openings planned for the next 4 quarters?
Richard Costello : We’re not disclosing any kind of range of percentages in new community growth. But with 6,000 finished lots on the ground at the end of the year, we’re going to have plenty of start opportunities including new communities, obviously.
Jed Dolson : From an operational standpoint, I would just add that we’re excited about the 6,000 lots. We feel like we will not be bumping up against sales limitations and/or gap out situations like we previously had. The fact of the matter is it just takes a long time to get these lots on the ground in today’s environment. We like — we really like the basis we’re at. We really love the locations, and we’re excited to just build homes and not have to worry about land development so much.
Alexander Rygiel : And then new home or home starts outpaced new orders a bit. Starts were, I think, 3.4 per community. Is your target absorption 3 or higher now? Is that a sort of a safe number to assume?
Richard Costello : That’s the neighborhood that we’ve been on the top side of now for the entire year. Actually for the entire year, we’re more like 3.6, but 3 works great. If we are right in that neighborhood, it is — it would be wonderful.
James Brickman : As Trophy expands at lower price points, obviously, we’re expecting a lot more sales per neighborhood. We were thrilled in Austin, and we just had a grand opening there. What did we make 12 sales this month, Jed?
Jed Dolson : We did.
James Brickman : So I hope we do that next month. I don’t promise. But as Trophy expands in the $350,000 price point, we expect a lot more sales per neighborhood.
Operator: [Operator Instructions] Your next question comes from the line of Alex Barron with Housing Research Center.
Alex Barron : Good morning, gentlemen and great job on the quarter. Sorry, I had to step out for a couple of minutes. I don’t know if somebody asked this already. But on your margins, obviously, a new high here. I was just kind of curious how much in the way of incentives is embedded in those margins? And how sustainable do you guys foresee those being into the next year or so?
James Brickman : Well, we answered it partly, Alex. The margins in our AAA locations, particularly like The Providence Group in Georgia only builds in totally infill locations. Incentives there were totally de minimis. In a C location for Trophy, where we’re going to be down the street from other large public builders. Jed, what our incentives are going to be competitive with Horton and what you’re seeing with Pulte and other guys?
Jed Dolson : Yes, they could range up to 8%.
