Number of Contracts

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This is the number of contracts the company to build new homes in the future. Each contract can be equated to one new house to be built.

Because of the high costs and intensive labor associated with home building, many home building companies only begin construction on new homes after the homebuyer has signed a contract. However, homebuyers can still cancel the contract, leaving the company with excess inventory.

The number of contracts is added to the company's Backlog Number of Homes and shows the amount of new homes for which the company expects to earn revenue from in the future.

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