What would happen if the Builders reset the prices back to 2003/early 2004 in a few months time frame and then resume more normal price appreciation 5% to 8% a year.

This I think would be in everyone best interest,

Not going to happen, nor would it benefit anybody. 5-8% isn’t normal, it’s a hot market.

The reality of normal for an established area is inflation +0.5-1%.