House Prices Quadruple in 12 Years to What Effect?

Not everywhere! Just some specific GTA neighborhoods and pockets

And just NOW right now at a moment there are 63 bids on an old Oshawa bungalow

So the 4X rise in 12 years is specific and momentary

2/

But what does it mean other than the prices are absolutely ridiculous

We know the reasons, so what are the effects

Firstly it means MASSIVELY more borrowing since most of those houses traded 3 or 4 times in the 12 years so there were a bunch of mortgages

3/

A great environment for lenders

Lots of mortgage origination, lots of penalties paid, profitable HELOC business and very low defaults because the price increases handle all problems, just refinance with a private lender or owner sells the house at a profit

4/

And good for specific groups of property owners: investors / speculators selling and banking profits and the elderly who are selling and retire somewhere property is much cheaper or with pot of cash to pay for elder care

Oh and VERY GOOD for facilitators

Just Wonderful

5/

Realtors, bankers, mortgage brokers, RE lawyers have made a pant load

And don't forget renovation trades, many of these quadruple value properties have been renovated or even just spruced up so materials were bought and trades were paid

Money has been made

6/

And I am one of those people

Unlike some RE facilitators who are breaking their arms patting themselves on the back for their hardwork and genius, I believe its mainly this wild RE market and I am just a very lucky person along for the ride

And I am damn grateful

And worried