You're not too far off the mark.  When I lived on the mainland, I would be in a brand new subdivision BECAUSE every new phase release, THE BUILDER, would push for higher and higher prices on every new phase.  Same thing is happening here on an island-wide basis.  More units will not bring prices down as builders, here too, will keep asking for more and more which pushes resale values too.   The only thing new project "may" do, is prevent new sales from asking for huge increases and they'd just have to settle for "moderate.  Still not resulting in lower prices though.