Spain did sort of price itself out of the market. I remember when the proceeds of an average priced house in the UK would buy you a coastal villa with pool, new car and all the lifestyle trapping and still be left with a substantial cash sum. Of course Spain caught up when they entered Europe.
Now I think spanish prices have somewhat exceed the UK (except for hotspots). For the average price of a UK house it is now only possible to buy a 2 bed box in Spain, which doesn’t have heating and is only purpose built for holidays or for a couple, not a family home.
Yes, there was a boom but mainly in the off-plan market, never a legitimate demand.