No. Bitcoin restores market prices rather than the fiat driven insanity we experience in the housing and stock markets to name a few. If the value of your house goes up, the price goes up.

Why not? I think that the value will be made by the fact that if more people want your house the price will go up. Who pay most will win.

House prices would still increase and decrease as their local markets fluctuate. If there are many buyers or too few sellers, house prices can go up.

The difference is that house prices won't regularly go up year over year as they are now. Houses are acting as a cash-equivalent or savings mechanism. Just somewhere to park wealth. Without fiat inflation, that utility would gradually disappear and houses will fall in prices as demand for them decreases and then stabilize at their value for living in.