Which term describes the increase in property value due to external economic factors?

The term that describes the increase in property value due to external economic factors is market appreciation. This concept refers to the rise in property values over time, often influenced by overarching economic conditions, such as increased demand in the housing market, improvements in local infrastructure, or overall economic growth in a given area. These external factors can enhance the desirability of a property, thereby increasing its market value.

Since market appreciation focuses on positive changes that contribute to rising property values, it highlights the influence of broader economic trends rather than internal property characteristics. Understanding this distinction helps clarify how external economic factors can lead to a more favorable assessment of property worth.

Functional obsolescence pertains to a reduction in property value due to flaws or outdated features within the property itself. Economic obsolescence refers to a decrease in property value resulting from external factors that negatively impact the property, such as changes in the surrounding area that detract from its desirability. Periodic adjustment does not specifically relate to property value changes and is more about periodic evaluations.