If banks were only allowed to lend out money they actually had in their possession, (thus destroying credit's power).... would homes in the USA inevitably be sold for $50,000 instead of $200,000?

I’m no economist obviously. That’s why I’m wondering and asking.

It seems that the market’s prices are based on the what the consumers are willing to pay. If people can fairly easily get a loan for $250,000.00, then that’s what the property builders will charge. But, if no one had access to that kind of dough… wouldn’t homes and other expensive things in America eventually be priced way less?