This goes back to the point I made earlier about there just being a much wider distribution of outcomes around home prices right now given the current market conditions. As we talked about earlier, we do expect to reduce spreads in the fourth quarter, given both incremental cost savings and home price seasonality, which leads to increased conversion, allows us to reramp paid marketing and will reaccelerate volumes in the first quarter. So, I think that’s the sort of macro overlay. Hopefully, that connects those dots. And then Christy, if you want to tackle the margin piece, margin progression.
Christina Schwartz: Yes, hi Ryan, it’s Christy here. So, the margin progression from Q3 to Q4. Keep in mind that in Q3. About 1% of that 99% of the Q2 offer cohort is in contract. So those homes will close in Q3, plus we still have one more percent to sell. So, there’s a bit of drag in Q3 from the old book in Q4 that is mostly gone, and that is why expect to be in our targeted range of 5% to 7% by Q4.
Ryan McKechnie: Got it. That makes sense. Thank you. And Carrie, you made a comment and generally, over time, you’ve talked about like there’s periods in the year that are kind of headwinds versus tailwinds. And I think you mentioned that as you get to 4Q things shift from headwind to tailwind, is that commentary just sort of alluding to the seasonality of pricing like if you’re buying homes in the fourth quarter presumably their homes you might be selling into kind of 1Q, 2Q next year when generally, pricing is a bit stronger?
Carrie Wheeler: You got it.
Ryan McKechnie: Curious if you, yes, sorry. Go ahead Carrie.
Carrie Wheeler: Sorry. That’s exactly it. I mean that’s seasonality in nutshell. Prices tend to be softer in the second half, stronger in the first half. Market volumes tend to follow that same pattern. And so, we would look to reduce our spreads in Q4 in anticipation of, again, seasonal tailwinds on pricing moving into the first quarter next year. Market volumes picking up also in the first quarter next year and selling into that strong first half of 2024. That’s a rhythm we’re super familiar with. We manage seasonality every single year. So it’s been – it’s quite consistent.
Ryan McKechnie: Yes absolutely. Okay. Awesome. Thank you so much.
Operator: Thank you. This concludes the question-and-answer session. I will now hand the call back over to Carrie Wheeler for closing remarks.
Carrie Wheeler: Thanks very much. I just want to say thanks for joining us today. As a hope comes across, we’ve really focused this year on what we can control, and we’ve made substantial progress in stabilizing the business, and really using this time to make improvements that we think will yield benefits for years to come. Thank you for your support to our shareholders, and thanks to the Opendoor team for their continued hard work and dedication, and we’ll talk to you next quarter.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
