For the regular Joe you always need somewhere to live, so it doesn’t matter if your houses is $100k or $1 million, that money is always going to be tied up in the house and not be spendable.
I mean, you could take out a loan against your home’s appreciated value, but most people do this to put value back into the house, like remodeling or landscaping. The value isn’t totally tied behind the sale of the house itself, but your point still stands.