Rick Beckwitt: Stuart, I think you answered it well. It’s really that consistency and cadence between starts and the sales that really keeps our machine going, and it makes us incredibly efficient. We’re very focused on keeping our products affordable. In many cases, that’s working hand in hand with our mortgage company and our mortgage in determining what that mortgage payment needs to be in order for us to transact. So it’s a very careful and methodical approach. And if prices move, they move, but we’re going to start and deliver the number of homes that we’ve targeted on a community-by-community basis.
Jon Jaffe: I would only add that if you think about our core strategy of being a production-first builder, we have consciously chosen not to limit production and drive pricing to maximize margins. We think we are a better company by being production first and managing sales pace to start pace that drives better returns, better cash flow that drives better returns. And that consistency that we all have spoken about really makes us a much more solid company. So it’s a strategic decision that really is reflective in the way that you see our pricing.
Stuart Miller: Why don’t we go ahead and take 1 more question?
Operator: Absolutely. Our final question comes from Mike Rehaut from JPMorgan. Please go ahead.
Mike Rehaut: Appreciate you getting me in before the end here. I wanted to just circle back, if I could, on the idea around 3Q orders. I think it’s an important distinction in terms of your approach and maybe how that differentiates versus the market. And really, what I’m trying to get at is, you’re talking about obviously the orders being driven by your own starts pace and strategy. I’m curious if in effect — because we’ve also heard in the last month, maybe 1.5 months of an expectation by a lot of builders to return to normal seasonality. And certainly, historically, your own sales pace has been down about 10% sequentially 3Q versus 2Q. So do you feel that at this point in the game — and you kind of highlighted the first few weeks of June, do you feel that this approach that you’re taking is in fact market — resulting in market share gains?
In other words, that what you’ve seen over the last few weeks, maybe a month, we’ve heard a little bit of sequential softening month-to-month, which is typical. So I’m just trying to get a sense of when you talk about your 3Q outlook and your approach to starts, if this is, in fact, kind of an active kind of gain of share relative to what you’re seeing across the broader marketplace?
Stuart Miller: Yes. So I think Jon laid this out a few minutes ago. And what we saw was that the appetite of the market favored ready-to-go inventory, shorter cycle closings, and that many were actually pulling back in that regard. And there are really multiple ways to think about this. Number one, the existing home market, which is generally a supplier of short-cycle ready-to-go inventory is somewhat constrained in that regard. Number two, a number of the builders in the context of the sharp increase in interest rates pulled back. The banking questions have perhaps limited part of the productive machine of the new home market to actually build inventory. We felt that there was an opportunity for us to fill a void. So I guess the answer to your question, Mike, is I think that we do see an opportunity to pick up some of the market share, where the market is not positioned to have that ready to go production or inventory in place available to the market.
