What does the economic principle of change state about market value?

The economic principle of change emphasizes that market value is not static but is influenced by a variety of forces. According to this principle, market value can fluctuate due to several dynamic factors, including physical changes (such as property condition or location), economic changes (like shifts in the job market or interest rates), governmental influences (such as new zoning laws or tax policies), and social forces (like demographic shifts or changing consumer preferences).

Understanding this principle is essential for real estate professionals as it highlights the need to constantly assess the conditions affecting property value. Market conditions can evolve, making it crucial for appraisers and managers to stay informed about these varying forces to accurately assess and predict market values.