“It is interesting that many people can get very irrational on the value of their real estate.”
All living sellers need take into account that they will almost certainly have to pay close to the market price on their next home.
Be aware that homebuyers often are not just buying a house, but they are via impact fees paying for roads and schools.
These impact fees can often be $25,000 in total, or even over $100,000.
In many blue areas middle class homebuyers and apartment renters are also paying to subside the housing of low-income people.
In some areas, mainly blue, there are price-limited housing units available to lower income people.
I live in CT—I have not seen a new road or school for many decades.
Lol.