According to the principle of change, what primarily influences property values?

The principle of change emphasizes that property values are dynamic and influenced by various external factors that can evolve over time. Specifically, trends and influences affecting the neighborhood play a crucial role in determining property values. This includes changes in demographics, economic conditions, local infrastructure developments, zoning regulations, and community amenities. As neighborhoods develop and transform, so too do the desirability and value of properties within those areas.

For instance, if a neighborhood sees growth in new businesses, improved public services, or enhanced transportation options, these trends can lead to increased demand for properties, thereby driving up their value. Conversely, if a neighborhood experiences decline, such as rising crime rates or economic downturns, property values may decrease as the area becomes less desirable.

While historical property sales data and future market predictions can provide insights into property value trends, they are not as influential as the immediate trends and influences impacting the neighborhood. Static property conditions do not account for the ever-changing external environmental factors that shape property market dynamics. Thus, the principle of change aligns with the idea that ongoing developments and shifts in the neighborhood context significantly affect property values.