Q €“ Alex Barron: Okay. Thank you and best of luck. I’ll let somebody else have a question. Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Jesse Lederman from Zelman & Associates. Your question, please.
Jesse Lederman : Hi. Thanks for taking my questions and congrats on the strong results thus far this year.
Ara Hovnanian: Thanks, Jesse.
Jesse Lederman : I’d like to learn a little more about the land market. Have land sellers begun to capitulate on land and lot prices given that you and presumably some of your peers are back in the land market. If so, I know it kind of depends on location and other factors. But are you able to give an example of some price adjustments in the land market you’ve seen recently versus what you may have observed a quarter or two ago?
Ara Hovnanian: Sure. Well, first, capitulate is a big word. I’d say, many land sellers are starting to be realistic about the appropriate pricing given net home pricing and absorptions. I’d say, the market was pretty inactive for six months from about midyear 2022. But — and there weren’t — the bid ask, if you will, for land was a big spread, and there just wasn’t a lot of activity. But as the market has improved a bit in terms of sales pace as homebuilders costs have improved a bit — and as land sellers’ expectations have lowered a bit, we are seeing more and more new transactions that make sense. So we’re being cautious, but we are back in the market in numerous locations around the country buying new land.
Jesse Lederman : That’s helpful. Thank you. Are you able to comment on maybe how far below a month or two ago, some of those land prices have kind of reset on a percentage basis?
Ara Hovnanian: It’s hard. I can’t say that we looked at site a before, and it’s now down 18%. It’s — there are many, many moving parts, including the pace of takedowns if we’re buying finished lots, the cost of land development, there are just many, many factors. But I’d say, in general, there is an easing of land prices, not across the board. Some markets remain particularly tight. Some many sellers have not adjusted their expectations, but we don’t need everyone in every market to adjust their expectations. We just need to find enough opportunities that pencil with the right returns for us to get back on our growth pattern.
Jesse Lederman : Makes sense. My second question is just on your quick move-in homes, so during February, as sales activity improved, how is demand for your — I guess, it’s more — I’m asking more about your build to order product. But as sales activities improved in February, how is demand for your build to order product trending? Your — the number of Quick Move In Homes you have for communities held relatively stable. So presumably, demand for that product has been high. Have you seen an equal increase in demand from build to order as your Quick Move In products over the last month or so, or has the increase really been mostly spec focused from home buyers?
Ara Hovnanian: We’ve seen an increase in both build to order and QMIs, but as we mentioned, our overall shares migrated to almost 60% QMI, where it used to be 40%. So there’s been more of an up-tick on the QMI side, but we have seen, especially in the last few weeks, a pickup on the build to order as well.
Jesse Lederman: That’s helpful. And any pricing nuances or pricing power differences you’re seeing on build to order versus spec and maybe margin, if you could give some color on the margin differential on your spec products versus your build to order product. I think that would be helpful as well.
