Our next question is coming from Dan Oppenheim of Credit Suisse. Your line is open.
Daniel Oppenheim - Credit Suisse
Good morning. I was wondering based on the more positive market conditions now, can you talk about the equity issuance which (inaudible) equity say it is priced during the second quarter, how do you look at that at this point?
Stuart A. Miller
We are going to leave all options open, Dan. We are trying to be smart about how we think about issuing equity. I think if you look at the way that we executed in the first quarter, when you talk about today’s price it moves around a lot, moving around a lot today.
I think that we have tried to be opportunistic if you look at where we issued stock in the first quarter. We really stay tuned to the market price. We are not saying today that we are going to be issuing more stock and putting more equity out there but we are not taking it off the table either and we’ll see what happens.
Daniel Oppenheim - Credit Suisse
Great and then the second question. I am just wondering I think you appropriately talked about the issues and a positive something come back to the market and also the interest rates. I was wondering about one other issue. We heard a lot about recently in terms of the appraisals on home code conduct are you finding more challenges with this, either during May or subsequent to the end of the second quarter
Stuart A. Miller
It’s been pretty consistent all the way through. The appraisal issue is out there and they are very real. We are finding a number of instances where we can sell a home and it’s hard to get an appraisal and this is a fight that takes place. We are going to be fighting this trend for some quarters to come as the market kind of repositions itself. So I think part of the problem of stabilization is going to be the appraisal market and how you get finance in normalized market conditions.
Daniel Oppenheim - Credit Suisse
Great. Thank you so much.
Operator
Our next question is coming from Timothy Jones of Wasserman & Associates. Your line is open.
Timothy Jones – Wasserman & Associates
I agree a 100% that you have been ahead of the market on your writedowns but I am very concerned about this $50 million writedown in your JVs which is obviously two areas in the West because that’s where the $50 million is and I want to know in California where were these two operations and why were they written down earlier? Were your partners trying to hold you back from taking the right dance because they felt West was bad for a year or two?
Bruce E. Gross
Tim, we go through this process every quarter and with the decline in prices that we have seen out there we have crossed over to the point where we thought there was an impairment necessary this quarter and then we discounted the cash flows as well. We didn’t think that our full investment in those joint ventures would be recovered but we look at these very close. We have been very conservative with this if we go back quarter by quarter. We have had much higher writedowns in investment JVs but this quarter we sell over the liquid fund on a couple of joint ventures out in California and it required a writedown.
Timothy Jones – Wasserman & Associates
Okay, second question is and I applaud you for the 20% reduction in square footage. Can you sort of give me a guess to how much of that is getting better pricing from your vendors, reduce labor cost from your suppliers, maybe less of amenities and more importantly redesigning and greeting the gains to build a house and can you give me a day, a number where have you gone from to just build a house?
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