How does the principle of change affect property values?

The principle of change suggests that property values are not static and can be influenced by various external factors, such as neighborhood developments, economic trends, and changes in demographics. This concept recognizes that as a community evolves—through developments like new schools, shopping centers, transportation infrastructure, or zoning changes—property values may rise or fall in response to these developments.

The correct choice emphasizes the dynamic nature of real estate values, supporting the idea that they can fluctuate based on area developments. This illustrates how changes in the surrounding environment or community can enhance desirability and thus increase property values, or conversely, how negative changes can detrimentally affect them. Understanding this principle is crucial for investors and real estate professionals to make informed decisions about property investments and anticipate market movements.