Property Valuation
What is 'regression to the mean' in Delaware property values?
AProperty values tend to decline toward the neighborhood average over time
BProperties that are significantly above or below neighborhood norms in value tend to move toward the average over time✓ Correct
CThe principle that overly improved properties decline in value fastest
DThe tendency for appraisers to estimate values near the purchase price
Explanation
Regression to the mean (or regression toward average) suggests that properties significantly above or below neighborhood value norms tend to gradually drift toward the area average, reflecting the principle of regression.
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