What type of assessment does the principle of change involve beyond specific properties?

The principle of change in real estate recognizes that properties and their values are influenced not just by their individual characteristics, but also by broader, observable trends and dynamics within the overall market and location. This principle encompasses changes in the surrounding area, such as shifts in demographics, economic conditions, and community development.

General location trends encapsulate these broader influences, providing a framework to understand how various factors like population growth, job market fluctuations, and overall economic conditions can affect property values. Properties that are situated in areas experiencing positive trends typically see increases in value, while those in declining or stagnant areas might not experience the same stability or appreciation.

This focus on location trends helps investors and real estate professionals make informed decisions by predicting how changes in the environment and community could impact property values over time.