Ryan Marshall: Well, Stephen, so there’s a lot to unpack there. I will try and touch on as many as I can, and I will ask Bob for a little bit of help here. I’ll maybe start with your starts question. We’ve got 211,000 lots that we control, half of those are owned. We’ve highlighted with the amount of land that our land spend for the year, which is going to be down substantially from 2022 with the lion’s share of kind of what we’re going to spend in 2023 be in development. Soon stuff that we’ve owned and we’ve purchased and we’ve underwritten and we’re — and we’ve got it in the kind of entitlement pipeline, we are going to spend the money to get those communities developed and open. So assuming the market cooperates and we see continued strength, I think that we’ve got the land pipeline such that we can ramp our production in concert with the consumer behavior.
So I feel pretty good about that. And then there are a couple of other pieces there that you asked, Bob, — maybe help me out here if there is anything that is the answer.
Jim Zeumer: lots and what we are going to see in Q1, if there would be further decline. I think it was the
Ryan Marshall: In lots owned, yes, decline in lots owned this year or next quarter.
Bob O’Shaughnessy: Well, like anything else, it depends on the demand environment, how many homes we close for lots, as an example, part of it will be things that are under option today. Are we able to negotiate? If we so desire a deferral of that. So it’s hard to give you an answer on that, Stephen, because we are negotiating contracts all the time.
Stephen Kim: Okay. All right. And what I was also asking, Ryan, was how quickly could you reattain a level of 35,000 starts?
Ryan Marshall: Yes. Stephen, that’s what I was trying to address with my commentary around land. We have the land pipeline such that we can do it. So really to be dependent on how deep — how deep is the consumer demand, and can we get the trades back on our job site? It’s part of the reason that you’ve also heard us say that we are going to continue to maintain a level of production that allows us to retain those trades on our job sites. So I think they’re linked. It’s a hard question to answer because I don’t know the answer on when demand is going to return to that level. But suffice it to say, I think we’ve got a production machine that’s capable of delivering that if demand is there.
Operator: Our final question comes from Susan Maklari with Goldman Sachs.
Unidentified Analyst: Thank you. This is actually Charles for Susan. I guess my first question is looking at the improvement in activity that you’ve seen through January, is it fair at this time to expect to sell space in Q1 to be in line with the pre-pandemic historical seasonality kind of a 30% to 40% improvement sequentially from 4Q to Q1?
Bob O’Shaughnessy: We haven’t provided any commentary on the sales environment. And what we’ve highlighted is that it’s variable. So I wouldn’t want to try and answer that question for you. That’s — you can decide that?
Unidentified Analyst: Okay. Okay. And second, you highlighted the potential to improve cycle times through the year. What are some of the key factors that could lead you to improvements in 2023, maybe between the material supply chain issues versus addressing labor availability challenges in the production?
