Does Not Having a Fractional Reserve System Cause More Inflation?
Canada abolished bank reserves in 1992. Canada has had very similar inflation rates as the United States since then.

Increases in house prices do not improve bank equity. Banks make a profit based on being paid a rate of interest above their cost of funds. Increasing house prices just reduce losses in the case of default. Threfore, the relatively steady profits that come from interest rate spreads slowly builds up equity, with the result that bank balance sheets only exhibit moderate growth rates (similar to nominal GDP growth rates).