3. Real Estate Inventories and Capitalized Interest

Real estate inventories consisted of the following:

	June 30,		December 31,
	2013		2012
	(in thousands)

Land and land improvements held for development or sale	$	204,093	$	140,048
Work in progress	42,440		18,943
Completed inventories	16,616		15,005
Investments in amenities	9,259		9,172
Total real estate inventories	$	272,408	$	183,168

Work in progress includes homes and related home site costs in various stages of construction. Completed inventories consist of model homes and related home site costs used to facilitate sales and homes with certificates of occupancy. The carrying value of land and land improvements held for sale was $1.8 million in both periods.

As of June 30, 2013 and December 31, 2012, single- and multi-family inventories represented approximately 89% and 84%, respectively, of total real estate inventories. In addition, as of June 30, 2013 and December 31, 2012, high-rise inventories represented approximately 8% and 11%, respectively, of total real estate inventories.

Capitalized interest is summarized as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
	(in thousands)						(in thousands)

Capitalized interest, beginning of period	$	10,011		$	2,831		$	7,959		$	1,014
Interest incurred	3,473			4,384			6,903			9,130
Interest expensed	(729		)	(2,155		)	(1,614		)	(5,015		)
Interest charged to cost of sales	(1,070		)	(371		)	(1,563		)	(440		)
Capitalized interest, end of period	$	11,685		$	4,689		$	11,685		$	4,689