There are no "profits" until it's sold. Profits can not be released without selling. Do you agree, or disagree?
Which proves the point I am making. To "make the money" you have to "cash in" but after casing in, you need another roof over your head and you will be buying back into a market that is most likely at the top, because that's why you sold. Not withstanding moving location or downsizing.
Once again, this is a time based factor. Over the long term, I accept what you say. Over the short term, many have lost, for many different reasons.
Another member who disagreed with me posted a graph for the US that actually proved my point on two occasions.
I remember during the GFC you could buy a house in many cities in America for next to nothing. You can only go up from there, but how about we discuss the thousands of people that sold. Did they get to see any "increase in value?"
No one said it was a problem. It just takes more of the profits from the sale of the "roof over your head" property.