Frugalparagon,
Moving again with two little ones will be tough.
Is the profit worth the trouble of showing, selling and moving, especially with little ones? Only you and your partner can decide that.
Can the real estate market be timed? Yes and it's easier than the stock market because it moves less quickly. Take a look at
http://www.realestatetiming.com/. In early 2006 I heard the author speak and bought his book. Based on this information I listed and sold a house realizing a substantial profit (it sold for 235% of my 1989 purchase price). I executed a 1031 tax deferred exchange and invested in a different geographic market which survived the real estate crash much better. Zillow shows that the house is
still not back to the value it sold at ten years ago.
If you try to challenge your partner's money decision with emotion (solely based on the pain of moving) it will likely not be met well. Instead assess the data behind his a suggestion.
Pay the few bucks to see the chart from the website and determine if Denver really is at the top. You won't be able to do a 1031 exchange because it's your primary residence, but you can calculate the sales expenses and taxes to determine what the
profit would really be. If it's small, don't disrupt the family. If the profit is huge
and Denver really is at the top, determine what you would do with the profit (buy again, invest, save, splurge, ???). Then compare
that benefit to the disruption to the family.
Depending on what you find, you may change your mind. Or, you may find compelling information to stay right where you are. Either way, the data will likely change the nature of the conversation and make it easier.