Principle of Supply and Demand

An appraisal principle that holds that market value is affected by the intersection of supply or quantity of units available and the demand forces or quantity of units desired in the market as of the appraisal date. 

The appraisal principle that follows the interrelationship of the supply of and demand for real estate. As appraising is based on economic concepts, this principle recognizes that real property is subject to the influences of the marketplace just as is any other commodity.