Inventory

9 Months Ended

Sep. 30, 2022

The components of inventory were as follows:


	September 30, 2022		December 31, 2021
Finished goods
Properties for sale	$	147,993	$	36,302
Properties under contract for sale	86,985		83,108
Work in progress
Properties not available for sale	9,002		16,377
Properties under improvement	57,251		222,434
Inventory	$	301,231	$	358,221

Inventory includes direct home purchase costs and any capitalized improvements, net of inventory reserves, which reflect the lower of cost or net realizable value write-downs applied on a specific home basis. As of September 30, 2022 and December 31, 2021, lower of cost or net realizable value write-downs were $18,274 and $2,364, respectively. These write-downs are included within the changes in inventory in net cash used in operating activities in our consolidated statements of cash flows. During the nine months ended September 30, 2022, we purchased 1,438 homes with an inventory value of $746,248 and sold 1,570 homes with an inventory value of $786,483. During the nine months ended September 30, 2021, we purchased 1,528 homes with an inventory value of $790,738 and sold 851 homes with an inventory value of $415,110.

Homes that are under contract to purchase through our properties business, but that have not closed, are excluded from inventory and represent commitments at the end of the period. As of September 30, 2022, the aggregate purchase price of these homes was $41,540.