Leviathan preferred world transfer

So the NA Twitter put out an update for congested worlds that included Leviathan saying that Leviathan was now considered a congested world. I was excited to use the free transfer to a preferred realm... sold a ton of items ... took everything out of my house, and Lost a ton of non reclaimable items.

When I went to transfer to a preferred realm .. it told me that I still had a house. Which if you transfer to a preferred realm shouldn't be an issue? Am I doing something wrong .. or does Leviathan not qualify despite the update? If so ... I lost a ton of non-reclaimable items .. can I get them back? I want to use the free transfer though.