Which principle states that value is influenced by the number of available properties compared to buyers?

The principle that states value is influenced by the number of available properties compared to buyers is the Supply and Demand principle. This principle explains that when there are more buyers than available properties, demand increases, causing property values to rise. Conversely, if there are more properties available than there are buyers, the excess supply can drive prices down.

Understanding this principle is crucial in real estate as it affects pricing strategies, market analysis, and investment decisions. The dynamics of supply and demand can fluctuate based on various economic factors, market conditions, and consumer behavior, making it a key concept for appraisers to grasp in determining property values.

Other principles, while related to value, focus on different aspects. For instance, utility refers to the usefulness of a property, transferability pertains to how easily ownership can be conveyed, and scarcity highlights the limited nature of certain desirable properties. Each of these principles plays a role in the overall understanding of real estate economics, but it is the Supply and Demand principle that specifically addresses how the availability of properties compares to the number of buyers in the market.