Yes, real wealth (and paper wealth) shifts around constantly depending on external factors, including all of the factors you listed above. Wealth is just optionality - if my house is worth $1M I have more options than if the my house is worth $500K, even if it is the same exact house.

Yes, labor is how wealth is produced, but in a sense, an individual's labor is more than that: a person's unrealized wealth is the discounted future value of their lifetime income minus necessary survival expenses. That's not a constant number - it depends on the individual's choices, but nevertheless, that is some number. And that number has some associated optionality.

If we increase the price of houses, the optionality associated with that future stream of earnings decreases, and therefore I believe that wealth has actually been transferred (since the optionality of the homeowner increases)