Common thought in the housing market is if you are selling a small home and buying a bigger home in the same market (let's say the South Bay) or doing the opposite by downsizing - then it doesn't matter if the market is a soft seller market or a hot seller market. High or low - you are simply trading across - a la the tide raises and lowers all boats...
True in a "normal" market. But is any market "normal"? And really - this market is not that at all. Because of specific abnormal issues affecting the market (lack of good first time buyer financing, REOs and short sales in abundance, decent financing for homes <$700,000 and ugly financing for anything above $1M, the condo market suffering HOA funding issues and lenders shying away from lending in those complexes, etc.) The market is segmented in ways that will allow certain buyers/sellers to gain over others.
The typical trade up buyer selling a small single family home or a townhome with the right criteria in the sub $700,000 range (that is not a short sale) will attract great buyer interest and sell at a very good price. That same client will also benefit very well as a buyer in the over $800,000 range due to a lack of buyers in that market and significant softness from REOs in certain areas (just look at what you can get in Evergreen/Silver Creek Country Club areas for $1M+ - VERY nice housing.
Every market has it's ideal moves, this market has ideal moves that are super-charged because of these highly unusual factors.
