Regression

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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