Property Valuation
In a New York appraisal, 'regression' in the principle of regression means:
AA highly valued property's value is increased by being surrounded by lower-valued properties
BA higher-valued property's value is reduced (dragged down) when it is surrounded by lower-valued properties✓ Correct
CProperty values tend to return to their historical average over time
DA newer property loses value as it ages
Explanation
The principle of regression holds that a higher-valued or over-improved property will tend to decline in value when surrounded by properties of lesser value. This is the opposite of the principle of progression (where a lower-valued property benefits from proximity to higher-valued properties).
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