HOME FLIPPING HITS SIX-YEAR HIGH

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A total of 51,434 U.S. single family home and condo sales were completed flips in the second quarter of 2016, according to a new RealtyTrac Q2 2016 U.S. Home Flipping Report. These numbers are up 14 percent from the previous quarter and up 3 percent from a year ago to the highest number of home flips since Q2 2010-a six-year high.

For the report, a home flip is defined as a property that is sold in an arms-length sale for the second time within a 12-month period based on publicly recorded sales deed data collected by ATTOM Data Solutions in more than 950 counties accounting for more than 80 percent of the U.S. Population.

Homes flipped in Q2 2016 accounted for 5.5 percent of all single family and condo sales during the quarter, down from 6.7 percent of all sales in the first quarter but up from 5.4 percent of all sales in Q2 2015.

A total of 39,775 investors (including both individuals and institutions) completed at least one home flip in Q2 2016, the highest number of home flippers since Q2 2007-a nine-year high.

"Home flipping is becoming more accessible for smaller operators thanks to an increasingly competitive lending environment with more loan options for real estate investors, who are also benefitting from the historically low mortgage interest rates," says Daren Blomquist, senior vice president at ATTOM Data Solutions. "That favorable lending environment for flippers has helped to fuel the recent flipping frenzy we've seen over the past five quarters.

"We're starting to see home flipping hit some milestones not seen since prior to the financial crisis, which is somewhat concerning, but there are a couple of important differences in the home flipping of 2016 compared to 2006 when home flipping peaked during the last housing boom," Blomquist continues. "First, home flippers are realizing a much bigger gross ROI in 2016, averaging 49 percent in the first two quarters compared to an average gross ROI of just 27 percent in 2006. Second, while an increasing number of flippers are financing their purchases, more than two-thirds are still using cash to purchase compared to about one-third using cash to purchase back in 2006." 

Of the 51,434 homes flipped in the second quarter, 68.3 percent were purchased with cash by the flipper, down from 71.1 percent in the previous quarter and down from 69.6 percent in Q2 2015 to the lowest level since Q3 2008-a nearly eight-year low.

"The single family real estate sector is becoming more institutional, which means that more financing is available and more attractive," says Varun V. Pathria, CEO at Asset Avenue, a company that provides investor rehab, bridge and rental loans. "The entrepreneurs are also becoming savvier and as a result are looking to leverage their capital more. There continues to be a fringe group of people who enter and exit the sector based upon opportunity and those people are hard to predict but generally look to take maximum leverage."

Pathria noted that 79 percent of the rehab loans Asset Avenue has originated so far in 2016 have been purchase loans while the remaining 21 percent have been refinance-typically an investor who purchases with cash at a foreclosure auction or some other auction and subsequently finances the property.

Gross Flipping Profit Increases to New All-Time High
Homes flipped in Q2 2016 sold on average for $189,000, $62,000 more than the average purchase price of $127,000, according to ATTOM data. That $62,000 average gross profit was up from an average $59,250 gross flipping profit in the previous quarter and up from an average $57,900 gross flipping profit in Q2 2015 to the highest average gross flipping profit since Q1 2000, the earliest quarter tracked in the report.

The average loan amount for rehab loans originated by AssetAvenue so far in 2016 was $193,786, according to CEO Pathria.

The $62,000 average gross flipping profit represented an average 48.8 percent return on the original purchase price, down from a 49.3 percent average gross flipping ROI in the previous quarter but up from a 47.5 percent average gross flipping ROI in Q2 2015.

Average Days to Flip at 10-Year High
Homes flipped in Q2 2016 took an average of 185 days to flip, up from 180 days from the previous quarter and up from 182 days in Q2 2015 to the highest level since Q2 2006-a 10-year high.

Among 100 metropolitan statistical areas with at least 90 home flips in Q2 2016, those with the longest average time to flip were Ogden-Clearfield, Utah (229 days); Naples, Fla. (222 days); Punta Gorda, Fla. (212 days); Palm Bay-Melbourne-Titusville, Fla. (206 days); and Pensacola, Fla. (206 days).

Markets with Highest Home Flipping Rate
Among 100 metropolitan statistical areas with at least 90 homes flipped in Q2 2016, those with the highest flipping rate were Memphis (11.1 percent); Visalia-Porterville, Calif. (10.1 percent), Tampa (10.0 percent); York-Hanover, Penn. (9.7 percent); and Mobile, Ala. (9.6 percent).

Other metro areas in the top 10 for the highest flipping rate in Q2 2016 were Fresno, Calif. (9.5 percent); Lakeland-Winter Haven, Fla. (9.5 percent); Deltona-Daytona Beach-Ormond Beach, Fla. (9.4 percent); and Clarksville, Tenn. (9.3 percent).

Along with Memphis and Tampa, major markets with a population of at least 1 million where the Q2 2016 flipping rate was above 7 percent were Miami, Orlando, Baltimore, New Orleans, Phoenix, Jacksonville, Florida, Nashville, and Las Vegas.

Markets with Highest Gross Flipping Profits
Among the 100 metropolitan statistical areas with at least 90 home flips in Q2 2016, those with the highest gross ROI for homes flipped in Q2 2016 were Pittsburgh (133.3 percent), Allentown, Pa. (117.9 percent); New Orleans (111.5 percent); Cleveland (102.6 percent); and Philadelphia (98.9 percent).

There were nine metro areas where the average gross flipping profit in Q2 2016 was more than $100,000: San Jose, Calif. ($161,000); San Francisco ($146,000); Los Angeles ($125,000); New York ($124,160); San Diego ($111,250); Oxnard-Thousand Oaks-Ventura, Calif. ($110,000); Baltimore ($105,000); Washington, D.C. ($104,500); and Seattle ($102,900).

Thirty-five percent of all homes flipped in Q2 2016 were sold by the flipper for between $100,000 and $200,000, the biggest share of any price range, but the biggest year-over-year increase in terms of price range was homes flipped in the $200,000 to $300,000 range-up 10 percent from a year ago.

Homes flipped for more than $5 million yielded the highest average gross ROI (73 percent), followed by the $50,000 to $100,000 price range (58 percent) and the $100,000 to $200,000 price range (58 percent).

Homes that were flipped in Q2 2016 were purchased by the flipper at a 25.7 percent discount below full "after repair" market value on average and sold by the flipper for a 9.2 percent premium above market value on average.

For more information, visit www.attomdata.com and www.RealtyTrac.com.

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All-Cash Investment Home Prices Rise 5.4 Percent

Prices for investment properties purchased without leverage increased at a greater rate than traditional housing, according to June data released by HomeUnion. All-cash prices jumped 5.4 percent year-over-year to a median price of $160,000, while the owner-occupied median sales price grew 3.3 percent to $253,600.

"As global economic upheaval weighed on investors decisions, single-family rental (SFR) investment homes remained a safe haven for many investors," explains Steve Hovland, director of research for HomeUnion. "Prior to the recent Brexit vote and ongoing uncertainty in the global equity markets, investors parked capital in real estate for its stable returns, which has resulted in higher investment home prices."

"Owner-occupied home prices are hovering near all-time highs, which is keeping many potential buyers on the sidelines and slowing price growth," adds Hovland. Sales price increased at a healthy clip, indicating ongoing stability in the housing market, partially fueled by historically low interest rates. The overall median sales price - including both owner-occupied and investment housing - increased 3.9 percent year over year to $234,500 in June.

For more information, visit www.homeunion.com.

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LOW-INCOME EARNERS STRUGGLE MOST WITH MORTGAGE PAYMENTS

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​​People with low incomes spend nearly 23 percent of their income on monthly mortgage payments, compared to high-income earners, who spend 11.5 percent of their income on monthly house payments, according to a new Zillow(R) analysis.

Compared to the past, mortgage payments are very affordable for the average American because of persistently low mortgage rates. But that doesnt tell the whole story. To see how different groups are faring in terms of housing affordability, Zillow divided income earners and homes into three tiers, assuming that low-income earners buy less expensive homes, median earners buy median homes, and high-income earners buy more expensive homes in the top third of the market.

The results show that lower earners carry a heavier burden when it comes to making monthly payments. Their incomes have been largely stagnant, while low-priced homes are gaining value fastest.  Low-income earners could expect to spend nearly 40 percent of their income on housing in 2007. For people in the top third of incomes, the peak was in 2006, when they could expect to spend just over 20 percent of their income on a mortgage. 

In some large markets, the amount low-income workers spend on housing is much greater. In Los Angeles, people who earn the least could expect to spend more than three-quarters of their income on housing alone. For the top earners, mortgage payments only took up 27.5 percent of their income - a difference of nearly 50 percentage points.

"Housing affordability is a different story for low-income Americans than for median and high-earning people," says Zillow Chief Economist Dr. Svenja Gudell. "They are spending much more of their income on housing, even when they buy the least expensive homes. On top of that, we know that the least expensive homes are gaining value the fastest and are the most scarce, making it hard to find a home to buy even if you can afford one. From a high level view, mortgage affordability looks pretty good across most of the country, but its not good for everyone."

The cost of housing exceeds 30 percent of the median income, the traditional rule for housing affordability, in about one-third of major markets for lower wage earners, and is above 50 percent in Los Angeles, San Jose, San Francisco, and San Diego. By contrast, San Jose is the only place where high-wage earners can expect to spend more than 30 percent of their income on housing.

For more information, visit www.zillow.com.

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3 TIPS FROM THE RICH TO BUILD WEALTH

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​The overwhelming majority of affluent Americans accumulated their wealth not through inheritance, as is commonly believed, but through earned income and investments.

The financial editors at Money Magazine recently interviewed a sample of well-off individuals, coming up with three universal tips that may help average folks to build wealth:

1. Get There Slowly - While some attained wealth fairly quickly by starting the right business at the right time (or developing a killer app), most entrepreneurs say you can amass the better part of $1 million if you start to earn at a young age and remain persistent about saving for the long haul.

 A 25-year-old beginning at $40,000 a year, for instance, who gets 2 percent annual raises and contributes 12 percent of his/her salary each year to a 401(k), would end up with an account worth more than $1 million at age 65, assuming a 6 percent annual return and an employer match of 3 percent per year.

2. Stick with the Basics - Many wealthy people own non-traditional investments, including hedge funds, timberland, and art, but when they were asked by Money how they made their greatest investment gains, 89 percent said traditional stocks and bonds.

3. Don't Try to Out-Guess the Market - With pundits constantly predicting which stocks are heading up or down and which sectors will sizzle or fizzle, it's easy to get the impression that success lies in shrewdly shifting your money around. The majority of the rich don't buy that.

Just 14 percent asked by Money said they made the bulk of their investment gains by timing the market; the other 86 percent credited their success to good old buy-and-hold investing. They key, they said, is investing in a diversified mix of stocks and bonds, and riding the long-term upward sweep of the market.​​

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STUDENT DEBT AND AFFORDABILITY CREATE RIFT BETWEEN HOMEOWNERS AND RENTERS

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​​​​​​​​​​Despite lackluster economic growth and stark home-price appreciation in several parts of the country in recent months, roughly three-quarters of surveyed households still believe now is a good time to buy a home, but there's a considerable gap in morale between homeowners and renters, according to the latest installment of the National Association of REALTORS(R) Housing Opportunities and Market Experience (HOME) survey. The survey also found that roughly half of young adults with student debt are uncomfortable about taking on a mortgage.

In NAR's second quarter HOME consumer survey, respondents were asked about their confidence in the U.S. economy and various questions about their housing expectations, including questions on if carrying student debt is tempering their ability and appetite to take on mortgage debt.

Through the first half of the year, NAR's survey found that the share of homeowners and renters who believe now is a good time to buy a home is mostly holding steady, with 80 percent of homeowners (82 percent in March) and 62 percent of renters (unchanged from last quarter) saying it's a good time to buy. However, the share of renters who think so is down from 68 percent in December 2015, and those under 35 were the least confident that now is a good time to buy.

Lawrence Yun, NAR chief economist, says the survey brings to focus the ongoing disparity in buyer confidence between current homeowners and renters. "Existing-home prices surpassed their all-time peak this spring and have climbed on average over 5 percent nationally through the first five months of the year and even faster in areas with severe supply shortages," he said. "Most homeowners appear to realize that if they're ready to sell, they'll likely find a buyer rather quickly and be able to use the sizeable equity they've accumulated in recent years towards their next home purchase. Meanwhile, renters interested in buying continue to face minimal choices, strong competition and home prices growing faster than their incomes."

Adds Yun, "Given these affordability pressures, it's no surprise respondents earning over $100,000 and those living in the Midwest - the most affordable region of the country - are the most optimistic about buying right now."

This quarter's HOME survey also revealed that carrying student debt is causing many to be uneasy about taking on additional debt. According to the survey, roughly two-thirds of non-homeowners and half of respondents under 35 with student debt said they aren't comfortable also having a mortgage. Furthermore, of those with student debt, non-homeowners and younger adults were less likely to believe they'd be able to qualify for a mortgage if they applied.

"It's becoming very evident from this survey and our research released last month that the financial and emotional impact of repaying student debt is contributing to a delay in purchasing a home for many would-be buyers," adds Yun. "At a time of quickly rising rents, mortgage rates at all-time lows and increasing housing wealth, a lot of young adults in their prime buying years are struggling to enter the market and are ultimately missing out on the stability and wealth accumulation that owning a home can provide."

Mostly unchanged attitudes about direction of U.S. economy, personal financial outlook
A tick under half of all households in the survey believe the economy is improving (49 percent), which is mostly unchanged since the inaugural HOME survey in December 2015. Renters, respondents living in urban areas, and those in the West were the most optimistic. On the other hand, nearly two-thirds of those living in rural areas don't believe the economy is improving.

Reflecting somewhat lessening confidence that respondents' financial situation will be better in six months, the HOME survey's monthly Personal Financial Outlook Index of all households slightly decreased (to 57.7 in June) since March (58.1), but is unchanged from June 2015.

Expanding belief that now is a good time to sell
With strong price growth prevalent in most of the country and homes selling at a quickened pace, more current homeowners (61 percent) believe it is a good time to sell compared to the first quarter of this year (56 percent). Respondents in the West were once again the most likely to think now is a good time to sell, while also being the least likely to think now is a good time to buy.

"More homeowners acknowledging this pent-up demand may perhaps mean we begin to see more supply come online in the near future," adds Yun. 

When asked about their outlook for home prices in their community in the next six months, almost all believe that prices will stay the same or rise (93 percent), which is consistent with last quarter (91 percent). Respondents from the West, those living in urban areas and renters are most likely to believe prices will go up in their communities.

For more information, visit www.realtor.org.

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WHAT'S BEHIND THE GATES? HIGHER-PRICED HOMES

Homeowners behind gates can expect an average $30,000 more for their home come sale-a premium, however, that can be offset by costly community amenities, according to research from the American Real Estate Society (ARES). The premium is due to actual and perceived benefits, such as privacy and safety, on the part of the buyer.

"This [research] provides clear evidence that homes in gated communities sell at a premium relative to comparable homes in non-gated communities," said ARES Publication Director Ken Johnson in a release. Johnson is a real estate economist at Florida Atlantic Universitys College of Business.

The premium may be less in gated communities where amenities like a clubhouse, pool or tennis court drive up maintenance costs for residents, ARES researchers found. Examining a sample of gated communities, researchers discovered a $19,500 decrease in sale price in communities with these types of amenities.

"Additional maintenance costs associated with these amenities often outweigh their benefits, and it appears that while a gate has value, additional neighborhood amenities do not always provide additional value," explained Mark A. Sunderman, one of the ARES researchers.

"From the perspective of both the buyer and the seller, this information should help each to better price property," Sunderman continued. "A good understanding of what adds value and what does not should help create increased marketability of gated homes."

"The long-held belief that gates add value is supported by the data, as long as the impact of the amenities is properly factored in," Johnson added. "This should set buyers minds to rest as to whether or not they are actually receiving a boost in value when they purchase inside a gated community."

Source: Florida Atlantic University (FAU)

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SURVEY: SAVING A TOP PRIORITY FOR MILLENNIALS, BUT IMPULSE SPENDING A MAJOR BARRIER

One in three millennials (34 percent) ranked saving as their No. 1 goal for the year - ahead of living a healthy lifestyle (20 percent), paying off debt (19 percent), and losing weight (14 percent). But while saving was a top priority, a majority of millennials attributed their lack of saving to impulse buying (65 percent).

According to a recent survey from the American Institute of Certified Public Accountants (AICPA) and the Ad Council, for older millennials - those born between the early 1980s and early 1990s - saving is crucial as they work toward major milestones in their lives. When asked what they were saving money toward, respondents sought to secure their future by saving for an emergency fund (40 percent), saving for retirement (22 percent) or starting a family (15 percent). They also reported saving for larger purchases like a vacation (36 percent), a new house (27 percent), a car (26 percent), home improvements (20 percent), or a wedding (8 percent).

To provide Americans aged 25 to 34 with the tips and tools to take control of their personal finances, AICPA and the Ad Council's national advertising campaign, Feed the Pig, is continuing to collaborate with new partners to deliver this critical content in a relevant and engaging way.

"Many young adults think saving is impossible," says Gregory Anton, CPA, CGMA, chair of the AICPA's National CPA Financial Literacy Commission. "While low salaries and high debt levels can certainly be barriers to saving, the key is to create a budget and stick to it. Establishing a disciplined saving strategy early in life and avoiding missteps will reap substantial long-term dividends."

In addition to impulse buying and lack of budgeting, an overwhelming majority of young adults say that their current salary (84 percent), having too many bills (81 percent), paying down debt (79 percent) and not establishing a personal budget (62 percent) are impediments to saving more. Regardless of the reason, almost half (44 percent) of those surveyed did not pay their full credit card balance each month or borrowed money from friends or family. Forty-one percent had less than $100 in their checking account, 30 percent paid a late or overdraft fee, and 23 percent missed a bill payment.

Over half (55 percent) of the young adults surveyed admitted that they were impulse shoppers, defined as making an unplanned purchase of $30 or more on a daily or weekly basis. Impulse buyers are more likely than those who never or rarely make an impulse purchase to have carried a balance on their credit card (45 percent vs. 35 percent) and have paid a late or overdraft fee (31 percent vs. 21 percent).

The Internet is viewed as a positive by millennials as an overwhelming majority (92 percent) agree that it has made it easier to get the best deal and 88 percent agree that they comparison shop for the lowest price before making a purchase. However, approximately one in four (28 percent) have seen a big ticket item they purchased for a lower price than they paid in the past year - underscoring the importance of being diligent when shopping for big ticket purchases.

"The good news is that millennials are internalizing the message that saving is important, but they still need help creating habits that stick," says Ad Council President and CEO Lisa Sherman. "We're excited to collaborate with partners like Facebook and Games for Change to create new tools and content that will help make saving easier and more accessible for millennials."

The Feed the Pig website offers a range of interactive tools, including calculators, podcasts and free subscriptions to weekly saving tips via email and text message to help foster positive saving habits.

To date, the Feed the Pig campaign has received more than $382 million in donated media through the Ad Council's model. The CPA profession launched a unified financial literacy initiative, 360 Degrees of Financial Literacy, 12 years ago. The effort brought together the AICPA, state CPA societies, and individual CPAs to address financial illiteracy.

Source: AICPA; The Ad Council

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​STUDENT LOAN DEBT A HURDLE TO HOMEOWNERSHIP

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​​The U.S. currently has a student debt load of $1.3 trillion, which accounts for 10 percent of all outstanding debt. The magnitude of the debt continues to grow in size and share of the overall debt in the economy. While this amount of debt has risen, the homeownership rate has fallen, and fallen more steeply among younger generations. To evaluate those trends, the National Association of REALTORS(R) (NAR) teamed up with American Student Assistance(R)'s (ASA's) SALT(R) consumer literacy program to conduct a survey of student loan borrowers who are current in repayment. The results are available in a new report entitled Student Loan Debt and Housing Report 2016: When Debt Holds You Back. Notably, only 55 percent of student loan borrowers are current in repayment.

Among non-homeowners, 71 percent cite student loan debt as the factor delaying them from buying a home. This is most frequently the case due to the fact that borrowers cannot save for a down payment because of their student debt. Sixty-nine percent of those who are delayed don't feel financially secure enough and 63 percent can't qualify for a mortgage due to debt-to-income ratios. Millennials are more likely to have difficulty saving for a down payment, and Gen Xers and baby boomers are more likely to have high debt-to-income ratios. For older millennials, 79 percent believe their student loan debt is delaying them from buying a home.

Among homeowners, 31 percent say student debt is impacting their ability to sell an existing home and move to a different home. These homeowners face a variety of problems: 18 percent believe it is too expensive to move and upgrade to a new home; 7 percent have problems with their credit caused by student loan debt; and 6 percent are underwater on their home.

The delay in buying a home among non-homeowners and homeowners is five years. One in five expect to be delayed three to five years. Those with higher amounts of student loan debt and those with lower incomes expect to be delayed longer from purchasing a home than those with higher incomes and lower amounts of debt.

Forty-two percent were delayed moving out of their family member's home after college, regardless of whether they were buying a home. This delay has a financial impact on both parents and the student loan borrower. Twenty-two percent were delayed by at least two years in moving out of a family member's home after college due to their student loans. While 18 percent are currently homeowners, 17 percent live with friends or family and do not currently pay rent. Forty-six percent of younger millennials live with family (both those paying and not paying rent) compared to just 25 percent of Gen Xers.

Among survey respondents, most are employed. Seventy-one percent are employed full-time, 14 percent are employed part-time and seeking full-time employment, and 10 percent are seeking employment. Sixty-seven percent received their loans from a four-year college, 31 percent from a two-year college, 27 percent from graduate/post-graduate school, and 11 percent from a technical college.

According to the National Association of REALTORS(R) Profile of Home Buyers and Sellers, among recent homebuyers, one-quarter have student loan debt and the typical amount is $25,000. The share of those with student loan debt rises to 41 percent among first-time homebuyers. Even among successful homebuyers, this amount of debt is cited as a difficulty in the home-buying process.

To find the full report, go to www.realtor.org/reports/student-loan-debt-and-housing-report.

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BUYING A HOME FOR THE FIRST TIME? WHAT YOU SHOULD KNOW ABOUT WARRANTIES

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​​​​​​​Home service contracts, or home warranties, are an important consideration in the home-buying process, especially for new homeowners.

"Homes are a major financial investment, and repairs and replacements on appliances and major systems can cost anywhere from $700 to more than $3,500," explains Tim Meenan, CEO and executive director of the Service Contract Industry Council (SCIC). "While new homeowners face numerous expenses, a home service contract can guard against these unexpected pricey repairs and replacements."

Generally, a home service contract covers repair or replacement costs of major systems or appliances that fail within the contract period-often one year. This may include coverage of the home's electrical system, HVAC unit and plumbing system. Typically, the contract can be renewed annually. Most contracts come with a nominal service fee, paid at the time of the incident.

Aside from monetary coverage, the home service contract provider will refer the buyer to a vetted contractor who can perform repair or replacement work-a boon to buyers new to an area.

Most homeowners with home service contracts call upon the contract provider two times or more each year.

The SCIC strongly recommends first-time homebuyers negotiate a home service contract before committing to a home. If you're new to home-buying, discuss your options with your real estate professional-he or she can offer counsel for your circumstances.

The peace of mind, Meenan says, is worth it.

Source: Service Contract Industry Council (SCIC)

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HUD AND DOJ AWARD $8.7 MILLION TO PREVENT AND END HOMELESSNESS

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For many individuals convicted of minor crimes, finding jobs and decent housing is so challenging that many are at extreme risk of homelessness or reentering the criminal justice system. Recently, the U.S. Department of Housing and Urban Development (HUD) and the Department of Justice (DOJ) awarded $8.7 million to address homelessness and reduce recidivism among this justice-involved population through the Pay for Success model.

HUD's Pay for Success Permanent Supportive Housing Demonstration tests cost-effective ways to help persons cycling between the criminal justice and homeless service systems.

Funded by DOJ and implemented through a HUD/DOJ partnership, this demonstration advances a model that offers a new source of financing to expand permanent supportive housing for the reentry population. This is part of a broader Administration effort to reduce barriers facing justice-involved individuals who are trying to put their lives back on track, including barriers to housing.

"Too often, as people leave the criminal justice system, they don't have the support network to help them get a second chance and they fall into homelessness," says HUD Secretary Julian Castro.

"These grantees have developed successful models that give returning citizens the opportunity to find a job and place to call home while reducing the costs associated with recidivism and homelessness."

"Every person re-entering society from the justice system deserves a fair shot at a life of renewed purpose and meaning," says Attorney General Loretta Lynch. "The Justice Department's partnership with HUD will expand services to help individuals gain access to housing and jobs, and to give those who have served their time a chance to fully rejoin society. Going forward, we intend to continue to promote and develop programs that help our returning citizens stay safe, supported, and secure."

Secretary Castro made the announcement at an interagency event led by DOJ at the Center for American Progress.

Research consistently demonstrates a correlation between homelessness and incarceration. The National Alliance to End Homelessness (NAEH) estimates that one in five people living prison becomes homeless upon reentry into the community, with an increase of 30-50 percent in major urban areas. Tracking the cycle of homelessness and incarceration in the reverse, the Council of States Governments and NAEH report that over 10 percent of people recidivating from jail and prison are homeless in the months before their incarceration. This rate jumps to 20 percent among individuals with a mental illness.

Pay for Success (PFS) strategies are public-private arrangements that help government test or expand innovative programs while paying only for those activities that achieve agreed-upon target outcomes. These grants will support PFS projects that implement a Housing First model for the reentry population who experience homelessness and are frequent users of homelessness, health care and other crisis services.

Established by President Obama, the Federal Interagency Reentry Council includes 20 federal agencies,that work to:

·         make communities safer by reducing recidivism and victimization;

·         assist those who return from prison and jail in becoming productive citizens; and

·         save taxpayer dollars by lowering the direct and collateral costs of incarceration.

The Reentry Council, recently codified by Presidential Memorandum, is removing federal barriers to successful reentry, so that motivated individuals - who have served their time and paid their dues - are able to compete for a job, attain stable housing, support their children and their families, and contribute to their communities. Reentry Council agencies are taking concrete steps to reduce recidivism and high correctional costs while improving public health, child welfare, employment, education, housing and other key reintegration outcomes.

In 2010, President Obama and 19 federal agencies and offices that form the U.S. Interagency Council on Homelessness (USICH) launched the nation's first comprehensive strategy to prevent and end homelessness. Opening Doors: FederalStrategic Plan to Prevent and End Homelessness serves as a roadmap for how the federal government will work with state and local communities to confront the root causes of homelessness, including individuals who are in and out of a variety of crisis services such as jails and prisons. Permanent supportive housing lowers public costs by stopping the revolving door between jail and prison and crisis services like those provided in emergency rooms and homeless assistance programs.

For more information, visit www.hud.gov.

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GENERATE MORE LEADS WITH THESE FOUR VIDEO IDEAS

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To make sure you stay top-of-mind, it's important for real estate agents to stay on top of the newest technologies and popular methods for getting and staying in contact with clients and prospects. A great way to connect with clients is through video marketing.

There are a number of benefits to using video in your marketing efforts - social media sites push videos to the top of network feeds, live-video streaming is gaining popularity and modern internet users are looking for easier ways to connect online. In fact, according to a recent survey, 85 percent of buyers and sellers want to work with an agent who uses video as part of their marketing efforts. When it comes to generating more leads, video marketing is definitely a step in the right direction. Here are four ways you can use video to generate more leads and more business.

1. Spotlight Your Local Area
We've heard it before, but it's a tried-and-true method - feature things in your local area. Doing so can be as easy as using your phone to grab a quick video of your favorite restaurant or park, or the best kids' playground. You could also interview long-time residents or even clients who just closed on their dream home, asking them why they chose this location. Upload the videos to YouTube and post links on your social pages and blog. If you want to try live-video marketing to show off your area, consider social media tools like Periscope, Facebook Live or Snapchat. There are some key differences between these tools, so it's worth doing some research to see which is best for you. Follow the links to learn more about each, and see how you could use each to show off your local area.

Here is an excellent example from local Gilbert, Arizona realtor Shawn Camacho from UBG United Brokers Group

​DID YOU SEE WHAT HAPPENED in GILBERT, ARIZONA?*PLEASE SHARE*Does anyone know what NEIGHBORHOOD this was in?‪#‎GRANDTHEFTGURU‬ style!‪#‎GURUAPPROVED‬

2. Stream Live Videos to Engage with Online Viewers

Before your next open house, share a sneak-peek of your favorite room in the house or a view of the backyard. Be sure to talk about both the features and the benefits of each. For example, if you're showing off the expansive backyard porch, remind viewers that they could have a huge Independence Day BBQ with their family and friends or host their children or grandchildren's graduation party. You could also host a live Q&A (perfect for Periscope), allowing the seller or yourself to show off the great features of the house while giving your audience a chance to ask questions.

If you're looking for something new, consider hosting what Tom Ferry calls a "mega open house" and catching some of it on video. To host a mega open house, when you first obtain a new listing, rather than immediately posting it in the MLS, wait a few extra days. During that time, host a small get-together, and invite neighbors of the community to stop by and preview the house. In doing so, you'll be able to connect with other members in the community. Remember, when a home sells in a neighborhood, generally one or two other local residents will decide to list as well. If these residents see your video, you'll automatically be top of mind as the agent who specializes in that market. Think of mega open houses as a way for you to bring in more potential sellers. When you catch the buzz on your local video stream, you'll be able to reach even more people.

3. Share Teasers of New Listings
Video teasers that show off the features and amenities of a new listing are great things to post on your blog, social and listing pages. In fact, homes listed with videos receive four times the inquiries than those listed without. Give potential buyers the chance to see what this listing has to offer. Filming a walk-through of the property lets viewers see the flow of the home, rather than just disjointed pictures. However, remember that there are benefits to keeping some cards close to the chest. You have the option to give a grand tour through video and posting it on your pages, or you could show off a little and ask any interested parties to schedule a time with you to view the rest of the listing. While showing the whole property can help you weed through uninterested buyers, you may lose out on other buyers that you can help find the home of their dreams.

4. Show Them Why You're the Expert
Sharing educational content can be a great way to start getting your face in front of potential buyers. There are a wide range of topics you can cover that would be useful to different parties. Because of this, the first thing you should do is consider your audience, who you currently work with and who you would like to start working with. This can also affect your choice of video platform. If you want to target Millennial buyers, think about hosting a Q&A about the buying process through Periscope. If you work with empty-nesters, it might be more beneficial to post a video on your Facebook page with tips for downsizing. At the end of either video, offer them a free downloadable eBook or checklist to help them in their process. Drive these viewers back to your landing page and include lead forms, so you can capture their information and follow up with them.

While these are examples of evergreen content, you can also host video Q&As or film quick DIYs to post seasonally. Showing off your local beach or pool is great for the warm summer months, but might not be the best for the snowy season. You can also create a video of your favorite Thanksgiving table decorations, sharing the name of local stores where you found them, or even your favorite spring salad recipe, showcasing the produce you found at your local farmer's market. Try to balance the seasonal and evergreen content, so you'll have material to engage with followers throughout the year.

If you're looking for more ways to get in front of home buyers and sellers who are ready to transact, Homes.com Local Connect Ads instantly bring you property inquiries from active buyers and sellers when they are ready to engage with you. Local Connect positions you prominently in front of transaction-ready consumers in your target zip code, while showcasing your photo or logo, phone number and endorsements.

For more information, visit connect.homes.com.

CashBuyersLists.com

HUD Awards $42 Million of Counseling to Those with Housing Needs

HUD Awards $42 Million of Counseling to Those with Housing Needs

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The U.S. Department of Housing and Urban Development (HUD) recently awarded more than $42 million in housing counseling grants to hundreds of national, regional and local organizations to help families and individuals with their housing needs and to prevent future foreclosures. HUD's housing counseling grants and the additional funding they leverage will assist more than 1.4 million households find housing, make more informed housing choices, or keep their current homes.

June is National Home ownership Month, a time HUD recognizes how home ownership enhances lives and contributes to thriving communities. "Dare to Own the Dream" is the theme of this month-long recognition, reinforcing the long-held belief that owning a home remains one of the cornerstones of the American Dream. The grants awarded were announced at a White House gathering to mark National Home ownership Month.

HUD Secretary Julian Castro says, "Housing counselors provide potential homeowners with the tools they need to ensure they're ready and responsible. Their efforts give countless families a real shot at the American Dream of homeownership. The counseling organizations HUD supports are on the front lines in providing the full spectrum of services households need-from locating affordable rental housing, offering advice on how to become a homeowner, and preventing foreclosure."

More than $40 million will directly support the housing counseling services provided by 31 national and regional organizations, five multi-state organizations, 17 State Housing Finance Agencies (SHFAs) and 181 local housing counseling agencies. In addition, HUD is awarding $2 million to four national organizations to train housing counselors who will receive the instruction and certification necessary to effectively assist families with their housing needs.

National and regional agencies distribute much of HUD's housing counseling grant funding to community-based organizations that assist low- and moderate-income families to improve their housing conditions. In addition, these larger organizations help improve the quality of housing counseling services and enhance coordination among counseling providers.

Counseling improves housing outcomes for homebuyers, homeowners, and renters. Last month, HUD published research findings summarizing the impact of housing counseling has on families' housing options and choices. In addition, recent research from the Federal Reserve Bank of Philadelphia and the Urban Institute continues to find substantial benefits to housing counseling for families who purchase their first homes and those struggling to prevent foreclosure.

Grant recipients address the full range of families' housing counseling needs. This includes helping homebuyers evaluate their readiness for a home purchase, understand their financing and down payment options, and navigate what can be an extremely confusing and difficult home-buying process. The organization also help households find affordable rental housing and offer financial literacy training to individuals and families struggling to repair credit problems that restrict their housing options.

In addition to providing counseling to homeowners and renters, these organizations assist homeless persons in finding the transitional housing they need to move toward a permanent place to live. Finally, grantees also assist senior citizens seeking reverse mortgages. These agencies provide counseling for the rapidly growing number of elderly homeowners who seek to convert equity in their homes into income that can be used to pay for home improvements, medical costs, and other living expenses.

Housing counseling agencies support fair housing by assisting borrowers in reviewing their loan documentation, to avoid potential mortgage scams, unreasonably high interest rates, inflated appraisals, unaffordable repayment terms, and other conditions that can result in a loss of equity, increased debt, default, and even foreclosure. Likewise, foreclosure prevention counseling helps homeowners facing delinquency or default employ strategies, including expense reduction, negotiation with lenders and loan servicers, and loss mitigation, to avoid foreclosure.

For more information, visit www.hud.gov.

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