Used cars used to be worth x% of a new car. Today, they are worth x+y% of a new car. If you trade up now, you will pay less for the new car than if you traded

Used cars used to be worth x% of a new car. Today, they are worth x+y% of a new car. If you trade up now, you will pay less for the new car than if you traded up two years ago. Similar situation for houses. Even if we assume all houses have inflated by the same rate, you can still downsize and cash out. Your existing $600K house is inflated 25% and you can sell for $750k. You downsize to a $400k house which is inflated to $500k. You oversold for $150k, but only overpaid by $100k and you pocket the difference.