Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Ivy Zelman, Zelman & Associates.
Ivy Zelman - Zelman & Associates
Tim you spoke about the improvement in sales activity which is obviously nice to report. One of the concerns that I think we all have to realize is at some point the government is not going to continue to provide the tax incentives with whether it would be fiscal and/or state wide like in California. And it looks as if California might be on pace for that absorption of that $100 million to possibly be sometime in the summer in July, maybe even sooner.
So the real issue I think that we ponder is what happens when there is no longer that incentive? And are you operating your business assuming that that pace of self activity in California continues where that clearly is a start performer on a relative basis? And then my second question relates to the buyers. We're hearing coffee table chatter that investors are back. And I'd like to know what percent of your sales are coming from investors?
Tim Eller
Good questions. So let me tackle the latter one first. As far as I know, very, very little of our sales are investors. Our sense is that investors are primarily in the foreclosure market which is a good thing. And the values in that market are quite compelling. So the quicker that they provide some stability to that market in this stage of the cycle, investor sales in the resale market might actually be okay because my sense is that there are longer term holders than they were at the peak of the cycle.
Back to your question on the tax credit. It's an interesting conundrum because very few of our sales right now, based on the data that we have through our mortgage operators are utilizing the federal tax credit. You are right in the sense that a lot of buyers in California are using the California tax credit. That's really a first come first serve tax credit that will be available until the amount is used up, which I think is getting probably close to now.
I don't expect that the exploration of the tax credit in November on a federal basis will have much of an impact in our sales. What we're seeing is just really first time buyers who are seeing a historic opportunity with interest rates and affordability levels to take advantage of buying their first home.
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