PHM
#Thanks, <UNK>.
Sorry, those are the absolute increases, <UNK>, not sure I understand your question.
Yes, <UNK>, I just ---+ I probably just want to clarify the comment.
We're ---+ the focus is on running a balanced business and we're not going to get over-indexed toward any one particular buyer group.
We like the recovery that we're seeing in the first-time buyer.
They were noticeably absent in this recovery, as this recovery was predominantly led by the move-up buyer.
And I think as the economy and, frankly, the housing recovery cycle has continued to progress, we're seeing strength from the first-time buyers and thus, additional opportunities for us to put capital to work.
As Bob highlighted and detailed, our strategy has been to stay closer to the job core, closer to the city center.
We're not going into the exurbs and chasing volume for volume's sake.
So while we like what we're seeing and we're seeing opportunities to be a little bit more balanced in how we are allocating capital, you won't see us become over-indexed toward any one buyer group.
You are not.
That is the math, <UNK>.
Yes, Mike, your math is correct.
Yes, so on interest, Mike, we obviously have borrowed an incremental roughly $1 billion during the year so our interest cost is up.
We don't think it will have a significant impact on the gross margin percentage because it's going to be against the bigger base of business so we think it's relatively neutral 2016 to 2017.
In terms of the color commentary, we are in the midst of doing our planning right now and so we can give you a little more color on that when we provide a fresh update for our, candidly, our real estimate ---+ not real, sorry, our budget-based estimate for 2017.
Yes, <UNK>, this is <UNK>.
We're just not as ---+ we're not investing at the same rate that we were previously in the active adult space, as you're also seeing the overall size of the communities come down and be a little more smaller.
If you look at ---+ if you look historically, some of our Del Webb communities were 2,000 and 3,000 and 4,000 homes per community and that's simply gotten smaller over time so that would be the primary driver of bringing the average years of supply down.
They are just simply smaller communities.
We are very big believers in the active adult space.
It's a huge consumer group.
We have an unbelievably strong brand with the Del Webb brand and we're continuing ---+ we're going to continue to play in that space with that particular consumer.
Thank you.
I want to thank everybody for your time this morning.
We will be around all day if you have any follow-up questions and we look forward to speaking with you on our next call.
