The Ryland Group, Calabasas, Calif. (NYSE"RYL) Monday morning pre-announced order results for July and August that showed the company's efforts to open new communities are beginning to pay off.

Ryland said unit orders, net of cancellations, rose 30.7% in July to 336 and 15.6% to 301 in August, both compared to the same months last year.

Ryland's community count is up 21% and stood at 219 at the clsose of the company's second quarter on June 30. Since that time, Ryland has announced it is leaving the Dallas and Jacksonville markets.

Stephen East at Ticonderoga Securities lauded the results. In a research note, he wrote, "Quarter-to-date this compares very favorably to last year, up 25%. This trend is also well ahead of our forecasted growth rate of 9% for the full quarter."

Michael Rehaut at J.P. Morgan saw a broader trend in the numbers. He wrote, "Critically, while August orders decelerated moderately from July, we believe this was partly driven by normal seasonality, and more broadly, view August as relatively stable versus July in terms of both order and pricing trends, as we note two weeks ago HOV reported weekly orders in August up 10% sequentially from July and LEN reported positive order growth of 11% for its August-end quarter."