There was a time at the end of the last boom when the new list prices hit hyper-speed, and it was such a turnoff to buyers that it seemed like they gave up. I remember a similar feeling back in 1991 too.
The crazy part is that the new listings that are reaching for the moon are making those listed 2-3 months ago look like deals!
I think if the home listing price gets too out of wack, I think you are right they will just lose interest BUT, at the same time there are not a lot of must must cannot wait must sell now homes on the market.
Unlike 1991 and 2006-7 where they were building a lot of new homes, I think that will prevent a crash IMO, it will just kind of level off.
These houses look nice and may add to inventory in carlsbad , theres going to be 672 new dwelling there.
https://www.tollbrothers.com/CA/Toll_Brothers_at_Robertson_Ranch_-_The_Vistas#homedesigns