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Regression is an economic principle of value that states that, between dissimilar properties, the value of the better property is adversely affected by the lesser quality property.


Regression is non-conformity that decreases relative value in a neighborhood.  The value of superior houses tend to be pulled down because of the presence of inferior houses.


Regression is the same as progression except in reverse.


A house that is larger than others in the subdivision will usually sell for less than a similar house in a nearby subdivision where the houses are similar in size.


Example:  A 3,000 square foot contemporary house will be out of place in a subdivision consisting of 1,500 square foot traditional ranch houses.  It will sell for less than a similar house in a nearby conforming neighborhood.  This is an example of nonconformity causing regression.

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