True. But the practical reality is that unless I sell it, that "value" is of no value. And unless I have an income, I can't make the monthly payment with the cheaper dollars.
No matter how we try, we just can't make feces smell like perfume.
Inflation is bad, but can be used to an individual’s advantage IF (big IF) they are employed and their salary follows the increase in prices.
You ended with cash of $60,000 and home equity of $510,000. Your net worth of $570,000 is equivalent to $190,000 before the inflation. It's true that you would have to sell the house (or take out a HELOC) to tap the equity.
Feces does not smell like perfume.