Micheal Rehall, JP Morgan
If I could just squeeze in just one last one. On the incentive and then I will get back in queue seems like its broad-based I was just curious in terms of the increase in incentive if that was broad-based are more concentrated in certain market and just roughly how much of the roughly amount of the 100 bits of margin decline, gross margin decline the companies incentives being a cause of that 100 bits
Bruce Gross, Vice President and Chief Financial Officer
You know incentives is always an interesting question, it’s really is just a part of purchase price and has we noted is part of a community by community evaluation vary micro level. Incentives in some markets are running a lot higher in other markets there much low even within some markets there are some communities that have much higher incentives associated with them associated with them or purchase price associated alteration associated with them. We are very focus on looking at a community level figuring where the sales pace has slowed to a point where were no longer profiting leveraging overhead thinking about where we have incentive to bring that sale pace up so we maximize portability out of the community. So is it concentrated in an area? No, it’s a broad-based assortment that you can’t really put your finger on and alienate the market but it rolls up to what you seeing here.
Micheal Rehall, JP Morgan
Alright, than you.
Bruce Gross, Vice President and Chief Financial Officer
You bet.
Operator
Our next question comes from Eli Ekel with Gold Man Sacks, your line is open
Eli Ekel, GMS
Thanks. Good morning. You see exciting are positive incline of some of the market changes that have been announced. I just wonder your level of confidence these changes will actually impact the market from the previous announce changes really don’t think they have done much, just curious your thought around that.
Bruce Gross, Vice President and Chief Financial Officer
Well some of them are articulated and not quite implemented, I wouldn’t over emphasize my enthusiasm of these specific changes I think it is a beginning of a process and I think that the fact we are hearing this articulation at this point is suggested of the fact that people are starting to understand that perhaps we have overcorrected, perhaps its detrimental to the overall economy and to the landscape of the population and that we have to start getting and reverting to normal. I think our version to normal will unlock a lot of pens up demand and take some time and it is why I say on the horizon I see the best time for home building operation but do I see it correction that takes place, that alters the landscape in the next quarter I think no it more part of a process and I am fairly optimistic that politically as a country we are going to get to understand that capitalism is going to define, our access to capital is what is going to define what builds the middle class and some of that revolve around housing and I think people are going to be recommitted building a for sale housing market, that is going to work very well for us and other builders.
Eli Ekel, GMS
Thanks. I just wonder as you talk a little about but maybe go into a little bit more details about the ongoing process, soft pivot, capitol allocation, do you expect to be cash flow positive this year and if so what do plan on doing with that cash.
Bruce Gross, Vice President and Chief Financial Officer
We have been talking about this the last year and a half and it’s been very much part of management focus. We have been gently pivoting away from a land heavy strategy to a land lighter strategy and it is the focus on becoming cash flow positive but we do think as we get to the end of this year we do start to turn to cash flow positive with a healthier turn with even more in 2016. We are very focus on our return on invested capital, we think the first move with our additional cash flow with our additional capital will be in the form of depth reduction and focusing on our balance sheet but ultimately we will be considering where our excess cash flow comes from. Remember that it’s not just the home building should be cash flow generous ultimately our ancillary businesses also starts to contribute and we think we are going to have some important business to make as we get into future years.
