8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): October 31, 2008

M.D.C. Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware	1-8951	84-0622967
(State or other	(Commission file number)	(I.R.S. employer
jurisdiction of		identification no.)
incorporation)

4350 South Monaco Street, Suite 500, Denver, Colorado 80237

(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (303) 773-1100

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION; and	3
ITEM 7.01. REGULATION FD DISCLOSURE	3
ITEM 9.01. EXHIBITS	3
SIGNATURES	4
INDEX TO EXHIBITS	5
Press Release dated October 31, 2008
EX-99.1

2

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION; and

ITEM 7.01. REGULATION FD DISCLOSURE

     On October 31, 2008, M.D.C. Holdings, Inc. issued a press release reporting its third quarter and first nine months results for 2008. A copy of this press release is attached hereto as Exhibit 99.1.

     Limitation on Incorporation by Reference. The information being furnished shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (“Exchange Act”) or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01. EXHIBITS

Exhibit Number	Description
Exhibit 99.1	Press Release dated October 31, 2008

3

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	M.D.C. HOLDINGS, INC.
Dated: October 31, 2008	By:	/s/ Joseph H. Fretz
		Joseph H. Fretz
		Secretary and Corporate Counsel

4

INDEX TO EXHIBITS

Exhibit Number	Description
Exhibit 99.1	Press Release dated October 31, 2008

5

EX-99.1

Exhibit 99.1

M.D.C. HOLDINGS, INC.

NEWS BULLETIN

M.D.C. HOLDINGS, INC.	RICHMOND AMERICAN HOMES
	HOMEAMERICAN MORTGAGE

FOR IMMEDIATE RELEASE
FRIDAY, OCTOBER 31, 2008

Contact:	Robert N. Martin
	Investor Relations
	(720) 977-3431
	bob.martin@mdch.com

M.D.C. HOLDINGS ANNOUNCES THIRD QUARTER 2008 RESULTS

• Cash flow from operations of $106.0 million

• Quarter-end cash and investments of $1.37 billion

• No borrowings on homebuilding line of credit

• Pre-tax loss of $117.0 million; includes asset impairments of $95.4 million

• Net loss of $118.0 million vs. $155.4 million in 2007

• Diluted loss per share of $2.55 vs. $3.40 in 2007

• Total revenue of $361.2 million vs. $686.7 million in 2007

• G&A expenses of $51.6 million vs. $76.6 million in 2007, down 33%

• Closed 1,116 homes at an average selling price of $301,700

• Net orders for 667 homes with an estimated value of $182.0 million

     DENVER, Friday, October 31, 2008 — M.D.C. Holdings, Inc. (NYSE: MDC) today announced a net loss for the quarter ended September 30, 2008 of $118.0 million, or $2.55 per diluted share, which included pre-tax charges of $95.4 million for asset impairments. This 2008 third quarter net loss also was impacted adversely by a $61.1 million increase in our deferred tax asset valuation allowance, which contributed to the recognition of a provision for income taxes during the quarter. The net loss for the third quarter of 2007 was $155.4 million, or $3.40 per diluted share, including pre-tax charges of $249.0 million for asset impairments. Total revenue

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M.D.C. HOLDINGS, INC.

for the third quarter of 2008 was $361.2 million, compared with revenue of $686.7 million for the same period in 2007.

     Net loss for the nine months ended September 30, 2008 was $291.5 million, or $6.32 per diluted share, which included pre-tax charges of $238.5 million for asset impairments. This net loss for the first nine months of 2008 also was impacted adversely by a $115.1 million increase in our deferred tax asset valuation allowance, which reduced our benefit from income taxes. The net loss for the first nine months of 2007 was $355.8 million, or $7.79 per diluted share, including pre-tax charges of $551.4 million for asset impairments. Total revenue for the first nine months of 2008 was $1.18 billion, compared with revenue of $2.15 billion for the same period in 2007.

     Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “As national economic conditions continued to deteriorate during the third quarter of 2008, we generated in excess of $100 million in operating cash flow, largely through our efforts to reduce inventory balances and overhead expenses. As a result, we ended the quarter with $1.37 billion in cash and investments. Though many businesses across the country have struggled in the wake of tightening credit markets and overall market volatility, we believe that our capital structure currently provides us with adequate resources to pursue opportunistic land investments, given that our quarter-end cash and investments exceeded our total debt by more than $300 million and that our next debt maturity does not occur until 2012.”

Homebuilding Results

     Homebuilding loss before taxes for the quarter and nine months ended September 30, 2008 improved to $99.1 million and $270.8 million, respectively, compared with $258.0 million and $568.3 million for the same periods in 2007. The loss in 2008 narrowed in large part due to declines in asset impairment charges of 62% and 57%, respectively, for the third quarter and first nine months of 2008, and declines in homebuilding commissions, marketing and general and administrative expenses (“SG&A”) of 44% and 45%, respectively, from the comparative 2007 periods. These decreases in expenses and charges were offset partially by the impact of reductions in home closings and average selling prices from the levels achieved during the same periods in 2007.

     The Company closed 1,116 homes and produced home gross margins of 15.3% in the 2008 third quarter, compared with 1,963 home closings and home gross margins of 14.1% for the same period in 2007. For the nine months ended September 30, 2008, the Company closed 3,544 homes and produced home gross margins of 12.7%, compared with 5,995 home closings and 14.7% home gross margins for the nine months ended September 30, 2007. Average selling prices were $301,700 and $303,200, respectively, for the quarter and nine months ended September 30, 2008, down $30,000 and $38,900, respectively, from the same periods in 2007. Homebuilding SG&A decreased to $59.3 million and $183.0 million, respectively, for the three

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M.D.C. HOLDINGS, INC.

and nine months ended September 30, 2008, compared with $105.2 million and $330.1 million for the same periods in the prior year.

     Christopher M. Anderson, MDC’s senior vice president and chief financial officer, said, “We recognized $95 million of asset impairments charges during the quarter, including $91 million of inventory impairment charges. We impaired our land inventory by $70 million and our work-in-process inventory by $21 million, impacting approximately 3,500 lots in 150 subdivisions. The quarter-end book value of the impaired subdivisions after the impairments was $213 million, consisting of $55 million of land and $158 million of work-in-process. As was the case in the prior quarter, impairments in the West and Mountain segments accounted for more than 80% of all inventory impairments recorded in the 2008 third quarter.”

     Anderson continued, “In the interest of preserving value for our shareholders, we continued to evaluate strategies for reducing our overhead during the quarter, and as a part of that process we made the decision to exit the Illinois market. We continue to build on or sell the lots we control in this market but currently have no plans to evaluate any new land investments.”

     Anderson concluded, “We also made adjustments to our operating structure in most of our other markets and, as a result, our employee headcount decreased by more than 10% in the third quarter alone. Unfortunately, these difficult steps are necessary to return our Company to profitability. However, even as we right-size our organization, we continue to search for opportunities to make new investments to capitalize on current market conditions.”

Financial Services and Other and Corporate Results

     Income before taxes from the Company’s Financial Services and Other segment for the quarter and nine months ended September 30, 2008 was $3.4 million and $8.1 million, respectively, compared with $5.0 million and $16.8 million for the same periods in the previous year. The decreases in the 2008 periods primarily resulted from lower insurance revenue due to lower insurance premiums collected from our homebuilding subcontractors as a result of the decline in home construction levels. The Company also realized lower gains on sales of mortgage loans, as the dollar volumes of mortgage loan originations and mortgage loans sold declined in conjunction with builder home closings, which were offset by reductions in general and administrative expenses for our mortgage operations.

     Loss before taxes from the Company’s Corporate segment for the quarter and nine months ended September 30, 2008 was $21.3 million and $33.0 million, respectively, compared with income before taxes of $1.7 million and loss before taxes of $14.5 million for the same periods in 2007. The decline for both periods primarily resulted from reduced supervisory fees charged to other segments, an increase in interest expense related to incurred amounts that could no longer be capitalized to inventory and the impact of recording an $8.0 million gain on the sale of an aircraft during the 2007 third quarter.

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M.D.C. HOLDINGS, INC.

Home Orders and Backlog

     MDC received orders, net of cancellations, for 667 homes with an estimated sales value of $182.0 million during the 2008 third quarter, compared with net orders for 1,228 homes with an estimated sales value of $365.0 million during the same period in 2007. For the nine months ended September 30, 2008, the Company received net orders for 2,724 homes with a sales value of $786 million, compared with 5,756 homes with a sales value of $1.92 billion for the nine months ended September 30, 2007. During the third quarter and first nine months of 2008, the Company’s approximate order cancellation rate was 46% and 43%, respectively, compared with rates of 57% and 44% experienced during the same periods in 2007. The Company ended the third quarter of 2008 with a backlog of 1,127 homes with an estimated sales value of $364.0 million, compared with a backlog of 3,399 homes with an estimated sales value of $1.21 billion at September 30, 2007.

     Since 1972, MDC has built and financed the American dream for more than 150,000 families. MDC’s commitment to customer satisfaction, quality and value is reflected in each home its subsidiaries build. As one of the largest homebuilders in the United States, the Company has homebuilding divisions across the country, including Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, California, Northern Virginia, Maryland, Philadelphia/Delaware Valley and Jacksonville. The Company also provides mortgage financing, insurance and title services, primarily for MDC homebuyers, through its wholly owned subsidiaries, HomeAmerican Mortgage Corporation, American Home Insurance Agency, Inc. and American Home Title and Escrow Company, respectively. M.D.C. Holdings, Inc. is traded on the New York Stock Exchange under the symbol “MDC.” For more information, visit www.mdcholdings.com.

Forward-Looking Statements

     Certain statements in this release, including statements regarding our business, financial condition, results of operation, cash flows, strategies and prospects, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among other things, (1) general economic conditions, including changes in consumer confidence, inflation or deflation and employment levels; (2) changes in business conditions experienced by the Company, including cancellation rates, net home orders, home gross margins, and land and home values; (3) changes in interest rates, mortgage lending programs and the availability of credit; (4) the relative stability of debt and equity markets; (5) competition; (6) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (7) the availability and cost of performance bonds and insurance covering risks associated with our business; (8) shortages and

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M.D.C. HOLDINGS, INC.

the cost of labor; (9) weather related slowdowns; (10) slow growth initiatives; (11) building moratoria; (12) governmental regulation, including the interpretation of tax, labor and environmental laws; (13) changes in consumer confidence and preferences; (14) terrorist acts and other acts of war; and (15) other factors over which the Company has little or no control. Additional information about the risks and uncertainties applicable to the Company’s business is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, which has been filed with the Securities and Exchange Commission (“SEC”), and the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2008, which is scheduled to be filed with the SEC today. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. The Company undertakes no duty to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or presentations should be consulted.

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M.D.C. HOLDINGS, INC.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2008			2007			2008			2007
REVENUE
Home sales revenue	$	336,744		$	651,124		$	1,074,629		$	2,050,737
Land sales revenue		15,850			2,700			56,699			12,151
Other revenue		8,655			32,837			47,964			85,605
Total Revenue		361,249			686,661			1,179,292			2,148,493
COSTS AND EXPENSES
Home cost of sales		285,367			559,402			937,947			1,749,165
Land cost of sales		14,775			452			49,559			7,740
Asset impairments		95,388			248,950			238,498			551,422
Marketing expenses		18,797			28,694			58,350			87,144
Commission expenses		12,297			23,900			40,389			71,530
General and administrative expenses		51,596			76,482			150,276			247,229
Related party expenses		3			95			13			286
Total Costs and Expenses		478,223			937,975			1,475,032			2,714,516
Loss before income taxes		(116,974	)		(251,314	)		(295,740	)		(566,023	)
(Provision for) benefit from income taxes		(997	)		95,936			4,223			210,175
NET LOSS	$	(117,971	)	$	(155,378	)	$	(291,517	)	$	(355,848	)
LOSS PER SHARE
Basic	$	(2.55	)	$	(3.40	)	$	(6.32	)	$	(7.79	)
Diluted	$	(2.55	)	$	(3.40	)	$	(6.32	)	$	(7.79	)
WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic		46,219			45,751			46,094			45,659
Diluted		46,219			45,751			46,094			45,659
DIVIDENDS DECLARED PER SHARE	$	0.25		$	0.25		$	0.75		$	0.75

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M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)

	September 30,			December 31,
	2008			2007
ASSETS
Cash and cash equivalents	$	1,160,868		$	1,004,763
Short-term investments		94,767			—
Restricted cash		979			1,898
Unsettled trades		115,135			—
Receivables
Home sales receivables		25,489			33,647
Income taxes receivable, net		99,290			36,988
Other receivables		18,053			16,796
Mortgage loans held-for-sale, net		60,925			100,144
Inventories, net
Housing completed or under construction		541,866			902,221
Land and land under development		254,360			554,336
Property and equipment, net		37,701			44,368
Deferred income taxes, net		13,505			160,565
Related party assets		28,627			28,627
Prepaid expenses and other assets, net		80,275			71,884
Total Assets	$	2,531,840		$	2,956,237
LIABILITIES
Accounts payable	$	42,304		$	71,932
Accrued liabilities		288,343			339,353
Related party liabilities		—			1,701
Mortgage line of credit		30,534			70,147
Senior notes, net		997,416			997,091
Total Liabilities		1,358,597			1,480,224
COMMITMENTS AND CONTINGENCIES		—			—
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding		—			—
Common stock, $0.01 par value; 250,000,000 shares authorized; 46,598,000 and 46,549,000 issued and outstanding, respectively, at September 30, 2008, and 46,084,000 and 46,053,000 issued and outstanding, respectively, at December 31, 2007		466			461
Additional paid-in-capital		779,847			757,039
Retained earnings		393,589			719,841
Accumulated other comprehensive loss		—			(669	)
Treasury stock, at cost; 49,000 and 31,000 shares at September 30, 2008 and December 31, 2007, respectively		(659	)		(659	)
Total Stockholders’ Equity		1,173,243			1,476,013
Total Liabilities and Stockholders’ Equity	$	2,531,840		$	2,956,237

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M.D.C. HOLDINGS, INC.
Information on Segments
(Dollars in thousands)
(Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2008			2007			2008			2007
REVENUE
Homebuilding
West	$	195,073		$	389,309		$	639,623		$	1,277,012
Mountain		72,572			138,439			230,503			418,300
East		52,420			72,368			161,939			205,523
Other Homebuilding		38,411			60,364			115,916			184,195
Total Homebuilding		358,476			660,480			1,147,981			2,085,030
Financial Services and Other		9,545			14,652			28,318			47,836
Corporate		(2,709	)		16,048			14,215			30,510
Inter-company adjustments		(4,063	)		(4,519	)		(11,222	)		(14,883	)
Consolidated	$	361,249		$	686,661		$	1,179,292		$	2,148,493
(LOSS) INCOME BEFORE INCOME TAXES
Homebuilding
West	$	(47,741	)	$	(197,917	)	$	(142,723	)	$	(462,547	)
Mountain		(30,085	)		(925	)		(80,720	)		3,218
East		(14,854	)		(15,998	)		(27,502	)		(27,168	)
Other Homebuilding		(6,388	)		(43,158	)		(19,871	)		(81,776	)
Total Homebuilding		(99,068	)		(257,998	)		(270,816	)		(568,273	)
Financial Services and Other		3,414			5,018			8,119			16,776
Corporate		(21,320	)		1,666			(33,043	)		(14,526	)
Consolidated	$	(116,974	)	$	(251,314	)	$	(295,740	)	$	(566,023	)
INVENTORY IMPAIRMENTS
West	$	49,258		$	190,490		$	135,921		$	445,124
Mountain		25,195			6,930			59,249			16,707
East		12,551			16,237			22,298			24,669
Other Homebuilding		3,816			35,293			12,240			64,922
Consolidated	$	90,820		$	248,950		$	229,708		$	551,422

	September 30,			December 31,			September 30,			December 31,
	2008			2007			2007			2006
TOTAL ASSETS
Homebuilding
West	$	383,540		$	747,835		$	1,157,760		$	1,869,442
Mountain		381,435			474,203			535,568			535,554
East		163,492			250,658			308,070			333,902
Other Homebuilding		86,790			125,003			168,990			266,326
Total Homebuilding		1,015,257			1,597,699			2,170,388			3,005,224
Financial Services and Other		129,587			174,617			142,456			284,791
Corporate		1,432,853			1,229,178			1,091,566			657,917
Inter-company adjustments		(45,857	)		(45,257	)		(43,157	)		(38,057	)
Consolidated	$	2,531,840		$	2,956,237		$	3,361,253		$	3,909,875

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M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)

	Three Months												Nine Months
	Ended September 30,						Change						Ended September 30,						Change
	2008			2007			Amount			%			2008			2007			Amount			%
SELECTED FINANCIAL DATA
General and Administrative Expenses Homebuilding Segments	$	28,240		$	52,561		$	(24,321	)		-46	%	$	84,215		$	171,419		$	(87,204	)		-51	%
Financial Services and Other Segment		6,131			9,635			(3,504	)		-36	%		20,199			31,060			(10,861	)		-35	%
Corporate Segment (1)		17,228			14,381			2,847			20	%		45,875			45,036			839			2	%
Total	$	51,599		$	76,577		$	(24,978	)		-33	%	$	150,289		$	247,515		$	(97,226	)		-39	%
SG&A as a % of Home Sales Revenue Homebuilding Segments		17.6	%		16.1	%		1.5	%					17.0	%		16.1	%		0.9	%
Corporate Segment (1)		5.1	%		2.2	%		2.9	%					4.3	%		2.2	%		2.1	%
Depreciation and Amortization (2)	$	8,902		$	11,777		$	(2,875	)		-24	%	$	26,860		$	33,994		$	(7,134	)		-21	%
Home Gross Margins (3)		15.3	%		14.1	%		1.2	%					12.7	%		14.7	%		-2.0	%
Interest in Home Cost of Sales as a % of Home Sales Revenue		2.9	%		2.2	%		0.7	%					3.9	%		1.9	%		2.0	%
Cash Provided by Operating Activities	$	106,046		$	136,246		$	(30,200	)		-22	%	$	428,349		$	335,568		$	92,781			28	%
Cash Used in Investing Activities	$	(210,199	)	$	(6,307	)	$	(203,892	)		N/A		$	(210,315	)	$	(8,362	)	$	(201,953	)		N/A
Cash Used in Financing Activities	$	(31,796	)	$	(68,839	)	$	37,043			-54	%	$	(61,929	)	$	(105,674	)	$	43,745			-41	%
Corporate and Homebuilding Interest Interest capitalized during the period	$	3,749		$	14,444		$	(10,695	)		-74	%	$	32,666		$	43,320		$	(10,654	)		-25	%
Previously capitalized interest included in home cost of sales during the period	$	(9,689	)	$	(14,428	)	$	4,739			-33	%	$	(42,419	)	$	(39,971	)	$	(2,448	)		6	%
Interest Capitalized in Inventories at End of Period	$	43,734		$	54,004		$	(10,270	)		-19	%	$	43,734		$	54,004		$	(10,270	)		-19	%

(1)	Includes related party expenses.
(2)	Includes depreciation and amortization of long-lived assets and amortization of deferred marketing costs.
(3)	Home sales revenue less home cost of sales (excluding commissions, amortization of deferred marketing, project cost write offs and asset impairments) as a percent of home sales revenue. During the three and nine months ended September 30, 2008, we closed homes on lots for which we had previously recorded $68.5 million and $182.1 million, respectively, of asset impairments. During the three and nine months ended September 30, 2007, we closed homes on lots for which we had previously recorded $28.6 million and $56.6 million, respectively, of asset impairments.

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M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)

	Three Months												Nine Months
	Ended September 30,						Change						Ended September 30,						Change
	2008			2007			Amount			%			2008			2007			Amount			%
HOMEAMERICAN OPERATING ACTIVITIES
Principal amount of mortgage loans originated	$	198,780		$	286,192		$	(87,412	)		-31	%	$	576,565		$	930,769		$	(354,204	)		-38	%
Principal amount of mortgage loans brokered	$	34,977		$	118,580		$	(83,603	)		-71	%	$	141,147		$	364,813		$	(223,666	)		-61	%
Capture Rate		71	%		54	%		17	%					65	%		55	%		10	%
Including brokered loans		82	%		73	%		9	%					78	%		74	%		4	%
Mortgage products (% of mortgage loans originated)
Fixed rate		97	%		86	%		11	%					97	%		78	%		19	%
Adjustable rate — interest only		0	%		11	%		-11	%					1	%		20	%		-19	%
Adjustable rate — other		3	%		3	%		0	%					2	%		2	%		0	%
Prime loans (4)		46	%		86	%		-40	%					51	%		77	%		-26	%
Alt A loans (5)		0	%		0	%		0	%					0	%		14	%		-14	%
Government loans (6)		54	%		14	%		40	%					49	%		9	%		40	%
Sub-prime loans (7)		0	%		0	%		0	%					0	%		0	%		0	%

(4)	Prime loans generally are defined as loans with Fair, Isaac and Company (“FICO”) scores greater than 620 and that comply with the documentation standards of the government sponsored enterprise guidelines.
(5)	Alt-A loans are defined as loans that would otherwise qualify as prime loans except that they do not comply with the documentation standards of the government sponsored enterprise guidelines.
(6)	Government loans are loans either insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs.
(7)	Sub-prime loans generally are defined as loans that have FICO scores of less than or equal to 620.

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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(unaudited)

	September 30,		December 31,		September 30,
	2008		2007		2007
HOMES COMPLETED OR UNDER CONSTRUCTION
Unsold Home Under Construction — Final		364		515		493
Unsold Home Under Construction — Frame		495		656		862
Unsold Home Under Construction — Foundation		123		229		196
Total Unsold Homes Under Construction		982		1,400		1,551
Sold Homes Under Construction		852		1,350		2,791
Model Homes		428		730		758
Homes Completed or Under Construction		2,262		3,480		5,100
LOTS OWNED (excluding homes completed or under construction)
Arizona		1,612		2,969		3,962
California		873		1,491		1,867
Nevada		934		1,549		1,879
West		3,419		6,009		7,708
Colorado		2,638		2,992		2,904
Utah		731		863		900
Mountain		3,369		3,855		3,804
Maryland		192		302		307
Virginia		256		369		417
East		448		671		724
Delaware Valley		117		151		141
Florida		254		638		849
Illinois		155		191		201
Other Homebuilding		526		980		1,191
Total		7,762		11,515		13,427

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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(unaudited)

	September 30,		December 31,		September 30,
	2008		2007		2007
LOTS CONTROLLED UNDER OPTION
Arizona		431		512		388
California		149		157		157
Nevada		101		4		4
West		681		673		549
Colorado		183		262		258
Utah		—		—		—
Mountain		183		262		258
Maryland		349		558		605
Virginia		1,050		1,311		1,769
East		1,399		1,869		2,374
Delaware Valley		82		327		315
Florida		407		484		497
Illinois		—		—		—
Other Homebuilding		489		811		812
Total		2,752		3,615		3,993
NON-REFUNDABLE OPTION DEPOSITS
Cash	$	5,004	$	6,292	$	8,093
Letters of Credit		4,913		6,547		8,287
Total Non-Refundable Option Deposits	$	9,917	$	12,839	$	16,380

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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

	Three Months										Nine Months
	Ended September 30,				Change						Ended September 30,				Change
	2008		2007		Amount			%			2008		2007		Amount			%
HOMES CLOSED (UNITS)
Arizona		307		700		(393	)		-56	%		1,038		1,997		(959	)		-48	%
California		155		237		(82	)		-35	%		472		831		(359	)		-43	%
Nevada		210		310		(100	)		-32	%		639		1,028		(389	)		-38	%
West		672		1,247		(575	)		-46	%		2,149		3,856		(1,707	)		-44	%
Colorado		155		219		(64	)		-29	%		443		583		(140	)		-24	%
Utah		54		162		(108	)		-67	%		214		568		(354	)		-62	%
Mountain		209		381		(172	)		-45	%		657		1,151		(494	)		-43	%
Maryland		55		71		(16	)		-23	%		150		181		(31	)		-17	%
Virginia		60		72		(12	)		-17	%		199		216		(17	)		-8	%
East		115		143		(28	)		-20	%		349		397		(48	)		-12	%
Delaware Valley		24		35		(11	)		-31	%		75		116		(41	)		-35	%
Florida		70		115		(45	)		-39	%		254		381		(127	)		-33	%
Illinois		26		41		(15	)		-37	%		60		68		(8	)		-12	%
Texas		—		1		(1	)		N/A			—		26		(26	)		N/A
Other Homebuilding		120		192		(72	)		-38	%		389		591		(202	)		-34	%
Total		1,116		1,963		(847	)		-43	%		3,544		5,995		(2,451	)		-41	%
AVERAGE SELLING PRICES PER HOME CLOSED
West
Arizona	$	206.2	$	247.9	$	(41.7	)		-17	%	$	220.2	$	254.4	$	(34.2	)		-13	%
California		435.5		492.4		(56.9	)		-12	%		422.4		524.7		(102.3	)		-19	%
Nevada		243.3		294.2		(50.9	)		-17	%		246.2		301.5		(55.3	)		-18	%
Mountain
Colorado		346.4		357.7		(11.3	)		-3	%		348.6		345.5		3.1			1	%
Utah		331.4		363.3		(31.9	)		-9	%		336.4		359.8		(23.4	)		-7	%
East
Maryland		442.0		521.4		(79.4	)		-15	%		459.3		521.3		(62.0	)		-12	%
Virginia		458.5		484.1		(25.6	)		-5	%		459.5		491.4		(31.9	)		-6	%
Other Homebuilding
Delaware Valley		395.5		417.2		(21.7	)		-5	%		409.3		452.7		(43.4	)		-10	%
Florida		240.1		253.8		(13.7	)		-5	%		240.4		265.2		(24.8	)		-9	%
Illinois		351.7		396.1		(44.4	)		-11	%		347.8		381.7		(33.9	)		-9	%
Texas		—		110.0		N/A			N/A			—		129.6		N/A			N/A
Company Average	$	301.7	$	331.7	$	(30.0	)		-9	%	$	303.2	$	342.1	$	(38.9	)		-11	%

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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

	Three Months												Nine Months
	Ended September 30,						Change						Ended September 30,						Change
	2008			2007			Amount			%			2008			2007			Amount			%
ORDERS FOR HOMES, NET (UNITS)
Arizona		216			385			(169	)		-44	%		792			1,750			(958	)		-55	%
California		87			152			(65	)		-43	%		394			849			(455	)		-54	%
Nevada		111			239			(128	)		-54	%		487			984			(497	)		-51	%
West		414			776			(362	)		-47	%		1,673			3,583			(1,910	)		-53	%
Colorado		105			153			(48	)		-31	%		385			677			(292	)		-43	%
Utah		17			41			(24	)		-59	%		105			390			(285	)		-73	%
Mountain		122			194			(72	)		-37	%		490			1,067			(577	)		-54	%
Maryland		25			36			(11	)		-31	%		112			227			(115	)		-51	%
Virginia		40			81			(41	)		-51	%		152			275			(123	)		-45	%
East		65			117			(52	)		-44	%		264			502			(238	)		-47	%
Delaware Valley		20			23			(3	)		-13	%		56			104			(48	)		-46	%
Florida		33			81			(48	)		-59	%		215			377			(162	)		-43	%
Illinois		13			37			(24	)		-65	%		26			109			(83	)		-76	%
Texas		—			—			—			N/A			—			14			(14	)		N/A
Other Homebuilding		66			141			(75	)		-53	%		297			604			(307	)		-51	%
Total		667			1,228			(561	)		-46	%		2,724			5,756			(3,032	)		-53	%
Estimated Value of Orders for Homes, net	$	182,000		$	365,000			(183,000	)		-50	%	$	786,000		$	1,920,000			(1,134,000	)		-59	%
Estimated Average Selling Price of Orders for Homes, net	$	272.9		$	297.2			(24.3	)		-8	%	$	288.5		$	333.6			(45.1	)		-14	%
Cancellation Rate (8)		46	%		57	%		-11	%					43	%		44	%		-1	%

⁽⁸⁾ We define “Cancellation Rate” as the approximate number of cancelled home order contracts during a reporting period as a percent of total home orders received during such reporting period.

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14

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

	September 30,		December 31,		September 30,
	2008		2007		2007
BACKLOG (UNITS)
Arizona		346		592		1,257
California		125		203		445
Nevada		155		307		271
West		626		1,102		1,973
Colorado		155		213		347
Utah		69		178		287
Mountain		224		391		634
Maryland		88		126		233
Virginia		53		100		195
East		141		226		428
Delaware Valley		38		57		107
Florida		86		125		193
Illinois		12		46		64
Texas		—		—		—
Other Homebuilding		136		228		364
Total		1,127		1,947		3,399
Backlog Estimated Sales Value	$	364,000	$	650,000	$	1,210,000
Estimated Average Selling Price of Homes in Backlog	$	323.0	$	333.8	$	356.0
ACTIVE SUBDIVISIONS
Arizona		52		66		67
California		17		41		41
Nevada		25		39		41
West		94		146		149
Colorado		49		47		52
Utah		24		23		25
Mountain		73		70		77
Maryland		12		15		16
Virginia		16		18		21
East		28		33		37
Delaware Valley		2		4		4
Florida		12		20		23
Illinois		2		5		7
Other Homebuilding		16		29		34
Total		211		278		297
Average for quarter ended		220		287		303

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