What principle states that market value is never constant due to various influencing forces?

The principle that states market value is never constant due to various influencing forces is best represented by the concept of change. In the realm of real estate and valuation, change refers to the continuous evolution of market dynamics, influenced by factors such as economic conditions, demographic shifts, zoning laws, and technological advancements.

This principle highlights that market values are subject to fluctuations and can rise or fall based on external and internal factors. For example, changes in interest rates can affect buyer affordability, while new infrastructure developments can enhance property desirability, leading to shifts in market value. Recognizing this principle helps assessors and appraisers understand that any valuation is a snapshot in time, influenced by the constant state of flux in the market.

Understanding the nature of change in market values is critical for effective assessment and appraisal practices, as it emphasizes the need for ongoing analysis and responsiveness to new data and trends in the marketplace.