Real Estate Inventories

3 Months Ended

Mar. 31, 2019

Real estate inventories are summarized as follows:



	March 31,		December 31,
	2019		2018
	(Dollars in thousands)
Deposits and pre-acquisition costs	$	22,276	$	20,726
Land held and land under development	116,274		115,987
Homes completed or under construction	375,274		380,956
Model homes	49,288		48,621
	$	563,112	$	566,290

All of our deposits and pre-acquisition costs are nonrefundable, except for refundable deposits of $0 and $0.9 million as of March 31, 2019 and December 31, 2018, respectively.

Land held and land under development includes land costs and costs incurred during site development such as development, indirects, and permits. Homes completed or under construction and model homes include all costs associated with home construction, including land, development, indirects, permits, materials and labor (except for capitalized selling and marketing costs, which are classified in other assets).

In accordance with ASC 360, inventory is stated at cost, unless the carrying amount is determined not to be recoverable, in which case inventory is written down to its fair value. We review each real estate asset at the community-level on a quarterly basis or whenever indicators of impairment exist.