Tri Pointe Homes, Inc. (NYSE:TPH) Q3 2023 Earnings Call Transcript

Douglas Bauer: Good, good questions, Alex. As we stated on average, we’ve been able to reduce our cycle times from to about six day, weeks in reduction. And so it’s very back to a normalized schedule template. Our average is 112 day schedule so it’s about a 5.5 month construction cycle. And it varies based on product and market anywhere from 100 to 145 days, and it’s five to seven months in duration. And so we’re back to those templates and we’re going to continue to evaluate and see if there’s further reductions there coming, as we continue to look to more efficient product and, and reuse that efficient product that we’ve designed over the last couple of years. So we’re, we’re optimistic on the cycle time front.

Alex Barron: Awesome. And if I could ask one more going back to the, the discussion of the, the average consumer that, that buys your homes, have you guys done some hypothetical testing just how much more rate paying these guys could take. In other words, could, could, they pay 8% theoretically, could they pay higher than that.

Linda Mamet: Yes, thanks, Alex. We stress test our buyers at the time that they are pre-qualifying. And right now we’re stress testing typically at 8.5%, and don’t see issues for our buyers at that level.

Alex Barron: Got it. Well, thanks so much and best of luck.

Douglas Bauer: Thank you.

Operator: There are no further questions at this time. I would like to turn the floor back over to Doug Bauer for closing comments. Please go ahead.

Douglas Bauer: Well, thanks everyone for joining us today. And we want to wish all of you a safe and, and wonderful holiday season. I can’t believe the, the holidays are right around the corner. And look forward to reporting some strong results next February as we get back together. Thank you.

Operator: This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation and have a great day.