Why would you sell your puppies for a large amount under the market value? Would you do that with your house in an attempt not to be greedy because of the housing crisis?
You can't compare dogs and houses. Generally, when selling your house you are buying another one in the same inflated market, or leaving the it to heirs who are probably also struggling to buy or pay off mortgages.
Serious breeders are still selling their puppies at pre-lockdown prices: I know one who breeds top-end gundogs out of health tested parents with field trial awards coming out of their ears. Those dogs go for a grand normally. She has a litter about to go, and is charging what she always does.
That said, she is comfortably off. If I had a litter and was a bit skint, I might bump up puppy prices by a few hundred quid for anybody I hadn't already made arrangements with. But the amounts at the moment are just insane.
Breeders are businesses
Actually, many are not, not in the normal sense of the term. I've known quite a few people breed their working gundog or family pet just the once to keep one to continue their line. They might clear a few grand at the end of several months of planning, anxiety and hard work, always risking that it might go wrong and and they end up with big financial loss after a C-section for two puppies.