Progression in property valuation indicates that:

Progression in property valuation refers to the concept where the value of a lower-quality or lower-valued property is positively influenced by the presence of higher-quality or higher-valued properties in the surrounding area. This principle is grounded in the idea that property values are often affected by their location and the characteristics of neighboring properties.

When higher-valued properties are nearby, they can enhance the appeal of the neighborhood, leading to a general increase in property values, including that of the lower-valued property. This effect demonstrates the importance of the surrounding environment in real estate valuation and highlights how strategic investments in an area can uplift the entire neighborhood.

The other options do not accurately capture the essence of progression in property valuation. While high-quality properties may maintain or increase their value (as mentioned in the first option), this does not directly relate to the concept of progression. The statement that neighborhood characteristics do not affect property value is contrary to the fundamental principles of real estate, as location and nearby properties are critical determinants of value. Lastly, the idea that all properties decline in value over time is not universally true; many properties may appreciate in value due to various factors, including location improvements and market demand.