So we increase the value the house for whatever reason, then seller goes to the banks to cash it out or borrows more money on a bigger home (bigger debt), then the buyer did the same thing as the seller, sold his 1st home. then buyer goes to the banks to cash out or borrows more money on a bigger home (bigger debt). This loop keeps going.
This is one of the ways the billionaires became billionaires. THE bank is the bookkeeper!