Adding more houses will not stop players from putting a large price for their house if they think someone will think its worth it. The green houses owned by players usually have a decent price, not sure where the price abuse is coming from. That said, there are always houses with more than one room for sale in SF/LS that no player owns, whenever the server restart more become available and some get purchased, then the cycle repeats.
I sold 6 houses last couple of days, making 900k profit total, its good the way it is right now.