Which term describes unfavorable associations that can result in lower property values?

The term that describes unfavorable associations resulting in lower property values is regression. In real estate appraisal, regression refers to the principle that when a property is located in a less desirable neighborhood or surrounded by lower-quality properties, its value may decrease. This principle highlights how negative external factors can influence property values, often leading to a decline when a property is compared to those in more advantageous settings.

Understanding regression is crucial for appraisers as it helps identify properties that might have experienced a drop in value due to their location or surrounding conditions. This concept is the opposite of progression, which indicates that a less desirable property can benefit from being in proximity to higher-value properties. Conformity refers to the idea that property values increase when properties are similar to others in the area, and stability denotes the overall resilience of property values over time without significant fluctuations. Recognizing these concepts aids appraisers in making informed assessments of property values.