> Property owners often don't sell their property even when it seems advantageous to do so, both for them and for the economy in general.

I think there is a big difference between property owners who buy a house to live there, retire, hoping it appreciates in value, and people wealthy enough to buy a 2nd or 3rd house, or even a whole block. The later, would have no qualms selling them quickly if another opportunity arose. The first category of people will be a lot more risk averse. That's also one of the reason why the wealthy get wealthier, they don't have to worry about risk, and can easier jump from opportunity to opportunity.