Selling homes this first quarter was certainly more difficult than one year ago. We experienced softening demand, to varying degrees, in a number of markets and continue to be constrained by long delivery times at many of our communities.

The shortage of selling communities, coupled with some softening of demand in a number of markets, negatively impacted our contract results. It appears we may be entering a period of more moderate home price increases, more typical of the past decade than the past two years.

Speculative demand has ceased, and speculators are now putting their homes back on the market.

Demand at our communities, which began to soften in early September, now appears to be improving, although demand pressure from speculators has certainly passed.

Our results reflect the softening in North American demand and pricing that began in the third quarter of last year and that has continued well into 2005.

Our results for the first quarter confirm that discretionary consumer spending is softening in New Zealand and Australia.