5 unchanged sentences
These factors may include interest rates and Federal Reserve policy changes;
−Removed: consumer confidence and spending, which declined significantly in the first quarter of 2025;
+Added: consumer confidence and spending, which declined significantly beginning in the first quarter of 2025;
employment levels;
7 unchanged sentences
the effect of pandemics;
−Removed: and other factors, including those described elsewhere in this report.
−Removed: Recent declines in consumer confidence and spending, market fluctuations and the increased likelihood of recessionary conditions contributed to reduced demand for our homes in the first quarter of 2025 compared to recent prior periods, which adversely affected our first quarter 2025 results of operations.
+Added: and other factors, including those described elsewhere in this report and our other SEC filings.
+Added: Declines in consumer confidence and spending, market fluctuations and the increased likelihood of recessionary conditions contributed to reduced demand for our homes in the first six months of 2025 compared to the prior year period, which adversely affected our results of operations for the first six months of 2025.
If there is limited economic growth, declines in employment and consumer income, changes in consumer behavior, and/or tightening of mortgage lending standards, practices and regulation in the geographic areas in which we operate, or if interest rates for mortgage loans or home prices rise, there could likely be additional corresponding adverse effects on our business, prospects, liquidity, financial condition and results of operations, including, but not limited to, the number of homes we sell, our average sales price per home closed, cancellations of home purchase contracts, and the amount of revenues or profits we generate, and such effect may be material.
3 unchanged sentences
and we may incur substantial losses from operations.
+Added: During the first six months of 2025, we incurred inventory impairment charges of $7.8 million.
At any particular time, we cannot accurately predict whether housing market conditions will improve, deteriorate or continue as they exist at that time.
10 unchanged sentences
These factors have resulted in the past and in the future could result in a decline in the demand for our homes, as well as a decline in the pricing for our homes, an increase in customer cancellations, an increase in selling concessions, and downward pressure on the market value of our inventory, which could have a material adverse effect on our business, prospects, liquidity, financial condition and results of operations and increase the risk for asset impairments.
−Removed: In the first quarter of 2025, uncertainty resulting in part from the imposition and repeal of tariffs on U.S.
−Removed: trade partners caused declines in consumer confidence and spending, market fluctuations and the increased likelihood of recessionary conditions, which resulted in a decline in the demand for our homes during first quarter of 2025 compared to recent prior periods, which had a material adverse effect on our first quarter 2025 results of operations.
−Removed: If these conditions persist, there
−Removed: may be a sustained downturn in the homebuilding market, which would likely have an adverse effect on our business and results of operations for multiple years.
+Added: In the first six months of 2025, uncertainty resulting in part from the announcement, imposition and/or repeal of tariffs on U.S.
+Added: trade partners caused declines in consumer confidence and spending, market fluctuations and the increased likelihood of recessionary conditions.
+Added: This resulted in a decline in the demand for our homes during first six months of 2025 compared to the prior year period.
+Added: If these conditions persist, there may be a sustained downturn in the homebuilding market, which would likely have an adverse effect on our business and results of operations for multiple years.
In addition, the portion of our customer base that consists of first- and second-time move-up buyers often purchase homes subject to contingencies related to the sale and/or closing of their existing homes.
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Any increase in unemployment or underemployment may lead to reduced demand for our homes and an increase in the number of loan delinquencies and property repossessions and have an adverse impact on our business and results of operations.
−Removed: In the United States, the unemployment rate was 4.2% as of the end of March 2025, according to the U.S.
+Added: In the United States, the unemployment rate was 4.1% as of the end of June 2025, according to the U.S.
Bureau of Labor Statistics.
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Although inflation eased somewhat in 2024, high inflation has adversely affected us in recent years by increasing the costs of land, materials and labor needed to operate our business and could continue to adversely affect us in future periods.
−Removed: The recent implementation of widespread tariffs and the future implementation of inflationary policies may have similar adverse effects.
+Added: The announcements and implementation of widespread tariffs by the current U.S.
+Added: Presidential Administration and retaliatory tariffs imposed in response thereto could result in an inflationary environment having similar adverse effects.
In the event inflation increases again, we may seek to increase the sales prices of homes in order to maintain satisfactory margins.
However, an oversupply of homes relative to demand and home prices being set several months before homes are delivered and affordability concerns may make any such increase difficult or impossible in future periods.
−Removed: In addition, inflation is often accompanied by higher interest rates, which
−Removed: historically negatively impact housing demand.
+Added: In addition, inflation is often accompanied by higher interest rates, which historically negatively impact housing demand.
While we historically have been able to pass along price increases to our consumers to help offset price increases, we may not be able to continue to do so, thereby adversely impacting our margins.
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Tariffs and duties that have been and may be enacted into law could adversely affect our business and financial results, especially since we may not be able to raise home prices sufficiently to offset increased prices caused by any such trade regulations.
−Removed: The Trump administration has implemented a number of tariffs.
−Removed: Most recently, on April 2, 2025, the President implemented additional tariffs on 180 countries and territories, which currently range from 10% to 125%.
−Removed: Although these tariffs were subsequently paused in part for 90 days, it is uncertain whether and to what extent they may become effective following this period.
−Removed: Additionally, while Canadian lumber was exempt from these tariffs, the U.S.
−Removed: Department of Commerce has indicated that it will more than double duties imposed on Canadian softwood lumber imports by September 2025, which may increase the cost of lumber available in the U.S and, therefore, increase the cost of our homes.
+Added: The current U.S.
+Added: Presidential Administration has implemented and/or may potentially implement additional tariffs and/or duties on several countries and territories.
+Added: Any additional tariffs or duties would likely increase the cost of materials utilized for the construction of our homes.
As noted above with respect to the impact of inflation, while we historically have been able to pass along price increases to our consumers to help offset price increases we incur, we may not be able to continue to do so depending on the significance of cost increases, thereby adversely impacting our margins as a result of any tariffs and duties imposed on our operations.
More broadly, adverse effects such trade regulations may have on U.S.
−Removed: national or regional economies could adversely affect our business and financial results.
+Added: national or regional economies could adversely affect our business and operating and financial results.
Raw materials and building supply shortages and price fluctuations could delay or increase the cost of home construction and adversely affect our operating results.
14 unchanged sentences
Therefore, a decrease in the demand for our homes adversely affects the revenues of this segment of our business.
−Removed: In the first quarter of 2025, economic uncertainty, as described elsewhere in these risk factors, contributed to reduced demand for our homes compared to recent prior periods, which adversely affected our revenues and our Financial Services segment.
+Added: In the first six months of 2025, economic uncertainty, as described elsewhere in these risk factors, contributed to reduced demand for our homes compared to the prior period, which adversely affected our revenues and our Financial Services segment.
Future demand for our homes is uncertain and dependent upon interest rates for mortgage loans, consumer confidence, availability of credit, economic conditions and other factors, including those described elsewhere in this report, and it is possible that demand for our homes may decrease further in 2025 if current economic conditions persist or worsen.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.