Burst? No. Collector markets usually don’t burst.
Prices go up and down a bit, yes. The supply shortage will eventually correct itself. When prices are inflated like now just follow a few basic guidelines (if possible).
1. Don’t take cash out of the bank to pay inflated prices.
2. Sell games that have increased in value since you bought them to offset the increase of the new game.
3. If you want a new game, NIB at MSRP is often the best price. You just have to wait a while for the game.
When selling a game, I consider any loss of 10% or less just the cost of owning it for a while. Almost like rent. No harm. If I break even or make a profit, that’s a bonus. I’m sure this last bit is not to everyone’s liking, but it works for me.