Operator
Our next question comes from the line of Stephen Kim with Barclays. Please start with your question.
Stephen Kim, Barclays
Thanks very much guys. I was wondering first if you could talk a little bit about your comment of reactivating some previously mothball communities and bringing them online. Around the same time, you were saying that, you were talking about, possibly taking additional impairments and… I just wanted to understand a little bit. Are those two things related in your mind: as you reactivate some of these, parts of it sitting idle for a while, may be, require some longer term investments? Are you looking, sort of, to reactivate them and sell them, or, are these completely different parcels that you are referring to, for the impairments?
Jeff Mezger, President, Chief Executive Officer and Director
Stephen, in my prepared comments, I walked through why we decided to sell the community out in the Palm Springs area. It would be very cash intensive to develop. The market out there is extremely volatile and we could not see ourselves in the near future. Based on where we are at today, and our strategy to utilize our own cash to grow our business, we would not want to put the kind of dollars that one would have required in the ground. In the long term, it would take to get it back. So it was not consistent with improving our capital efficiencies. As we look at each asset, some could be sold, though typically that’s a harder financial hit. It would create more value through building things but we may sell some thing, we may build some thing. It’s one phase, two phase – every asset has its own strategy and each quarter we look at the timing, and the potential and the market conditions and how much cash would it take to activate this – we would not want to keep wedel [inaudible 33:56] and this thing down so we take those dollars and grow our business with higher returns elsewhere.
Jeff Kaminski, Executive Vice President and Chief Financial Officer
Right, I think that strategy, Stephen, is most closely associated with our new initiative of really focusing on asset efficiency as we go into 2015. And I think as Jeff mentioned in the prepared remarks, you know, we have been activating communities over the last couple of years and haven’t had very huge impairments relating to those activations. And we will continue to review our balance sheet for monetization opportunities, whether they be in billed out or in sales – as we move forward.
Stephen Kim, Barclays
Great. Yeah, no, that’s great. I guess, my next question relates to anything you might be seeing in terms of the entry level of the market. Anything you might be seeing in terms of the entry level of the market and, sort of, what’s you are telling your folks there. You know, obviously, we have seen the FHA fee action which will be in effect, I guess, at the end of the month. What are you telling your folks in the field with respect to how to position around that or how to react to any move in demand that would happen? Do you expect something to happen? Just, could we talk a little bit about that, and the entry level? And then one house-keeping thing: can I get the homes-under-construction number for the quarter?
Jeff Mezger, President, Chief Executive Officer and Director
Stephen, within the quarter, our first time buyer percentage ticked up a point, I think. It was basically consistent with what we had seen. It’s higher in Texas than it is in most of our other regions, because there has been job growth there, there is population growth and all the things that unlock the first time buyer. The FHA insurance premium reduction, sure you have seen in reports, they are estimating it would unlock another 250,000 buyers, both new and used, that otherwise wouldn’t have qualified. So, it’s a meaningful boost to the overall housing market – it said it will have a different impact. Our current FHA backlog does get the benefit of this reduction and so we have some communication out to the field on how to manage that because that goes in effect in the end of January so it helps your current backlog and it clearly changes the payments to qualify on future sales. So, you know, time will tell, how big an impact it has. Today, our FHA business is bunched up to 30% or so. It’s much slower than it used to be and, I think, as you see the first time buyer unlocked, it would probably go up again but right now it’s less than the third.
Jeff Kaminski, Executive Vice President and Chief Financial Officer
And on the house-keeping item, Stephen, total in production, at the end of the quarter is 3,002.
