Which is exactly the point being made by the parent comment that you can't capitalize on the upside. You'd have to sell and step out for a while.
Sure, my purchase costs went up some, but no where close to the additional value I got over normal for my sale. Put it this way, I paid a few hundred dollars, maybe a thousand dollars more for the car than I would normally, but I sold my old car for thousands more than I normally would have been able too.
That's capitalizing on the upside for sure.
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.