Jay McCanless: Hey, good morning everyone. Thanks for taking my questions. Just trying to think a little bit ahead to ’24, you’ve got the Colorado acquisition. Austin is going to be coming online. Maybe could you talk in rough numbers, what we should think about for community count growth looking into next year, just with all the different things that you have going on?
John Ho : Hey Jay, this is John. I’ll start with that and then maybe hand it over to Chris to talk about community count. We are excited about the new opening of our communities in Austin. And then, with the acquisition of Colorado, Richfield homes, they have three actively selling communities right now, which we will start seeing some of those deliveries in this fourth quarter. As it relates to 2024, I think, we probably share the same. I would say, thoughts about the market a lot of uncertainty, as it relates to interest rates and about incentives we have to offer around there. So we haven’t given any guidance on 2024. As it relates to community growth, I mean, I think that always remains unchanged.
Chris Porter: Yeah, I would agree Jay, that Colorado acquisition, there’s three communities there today. You can seem them on our website. And we would expand that those communities and then Austin, we’re – we’ve said that we think that we’ll start with three communities and then continue to grow it. So, I would see that growth in community count to be relatively consistent with where we thought 2023 at 10% to 15% range.
Jay McCanless: That’s great. Thank you. And then, Mike, I wanted to dive in a little bit to your comment that labor availability, materials availability is the best you’ve ever seen that. That’s pretty encouraging, given where the industry was two years ago. I guess what you already talked about how declining cycle time gives you better cash flow, but maybe from a product perspective, maybe talk about what other options this gives you? And it seems that this could, does this give you more incentive to go out and find more builders? I just I think there’s a lot we could draw from that comments or maybe if you could dig down on that a little bit, please?
Mike Forsum: Sure, Jay. I would say, as a point of clarification that I believe that labor and materials are the best probably since our – like pre-pandemic levels. We’re getting back to a normalization of our business and the execution and flow. So that’s super encouraging, as well as costing to be rating themselves in. So. from that standpoint on that side, we’re really happy with the trajectory of things. What it does though for us generally and it began our strategy, our business model is it moves us a little bit more towards dirt starts and dirt stars are always better in a sense that it allows us to create a relationship with our customer allows them to customize their house a little bit more to the way that they want it.
It vests them more in the house and the final outcome. We do collect more deposits because they have to put deposits down on options that they’re taking. So we believe that it’s a deeper and more secure transaction by doing dirt starts with dirt starts and dirt starts and with higher cycle times, you’re kind of closing the gap of where the industry was moving towards the spec level type of build to shrink the distance between sale and close. This is happening more organically by virtue of the fact that we can get our cycle times down. And so we’re seeing that roughly right now, where we’re seeing more buyers coming to the market looking to do a dirt acquisition versus a spec quick move-in acquisition or closed, I should say. So, from our standpoint, we think that that’s a good healthy thing that’s happening and we like the normalization and we think it’s building a stronger business for us.
Jay McCanless: That’s great. Thank you, Mike. And then, Chris would talk about, I think you said 18% approximately 18% for the full year gross margin. I guess, is most of that mortgage rate buydowns and the cost of those, or is there something else we need to talk about as it relates to pricing power? And you have the ability to push price right now?
