It’s truly an insane housing market, but can they even afford to downsize? I have no way of judging the cost there, but certainly here there is less than $450k difference between a typical house and a 2-3 bedroom condo. Since ts the land that scarce, smaller places go up in value along with the larger, so you never know.
In a much lower cost of living area, when my Mom downsized from the big house I grew up in, she both took a sizeable gain and yet still had to take a mortgage to buy a 2 bedroom condo to replace it