Attitude includes greed in delusional bubbles. When I buy into the narrative that house prices can only go up, I make irrational choices out of greed. How irrational? Buying more than one house at a sky-high price with almost nothing down, borrowing against the increase of equity on paper to spend on vacations and a speedboat. Buying a house whose mortgage I cannot afford because I'm sure I can flip it for a nest egg.
Attitude includes credit which comes from "credo" or "I believe". Not just bankers take an interest in how believable you and your neighbours' beliefs about the future are. When the coal mine at Tumbler Ridge was shut, there were deserted mine-owned houses everywhere that couldn't get a buyer for $30,000. Now this:
"The housing crunch has officially arrived in Tumbler Ridge. Three to four bedroom furnished homes are now renting for $2,200 to $2,600 each month. Several homes have all available rooms rented to shift workers and out-of-town contractors"The point is that the sames houses went from valuable to nearly worthless to valuable again as the believability of the town's future changed.
Attitude includes trust in community. When trust is lost through extreme inflation or through predation and robbery by gangs or governments, people conceal their wealth. Your house needs walls and alarms or guards to be saleable. Houses that look wealthy on the outside lose value. House transfers aren't registered at their true value. Deals are done in cash and barter. The stats you read about the housing market will be false or unavailable.
Attitude is individual as anyone who ever tried to sell a house will know. "I can't stand the bedroom carpet" "It's all on one floor!" "What a waste to have no basement!" "The living room windows get too much sun". "Those windows are perfect for solar heat in winter." "What a darling chandelier." and so on. Most individuals wouldn't pay 2/3 of your asking price but on average there is one person who will come close.
Replacement value is a good way to value a home but the attitude you and your community adopt can move the price more than the materials used to build the house.
Part 1 BASICS linked here.