On a personal level as a long time home owner it is great on paper, and if I was inclined to retire early, selling and moving to a more affordable city would be a wise move.  The thing is until anyone does sell and leave the market it is not real money - but the additional taxes I have to pay based on the value are.

And here is the buyer's dilemma; the prices are still going up, but the interest rates are historically low, and so if a person enters the market they are vulnerable due to the leveraging provided by such low interest rates.  Push those rates up a point and as the mortgage renews the affordability drops, the demand drops, and the value drops.  

The wise older home owner should cash in and leave the city, and the wise younger person has to hold because the downside is too steep.  (Don't buy high only to sell lower.)

I am sympathetic to those who cannot afford to buy, but don't buy in to become vulnerable.