In property appraisal, economic obsolescence is associated with ____________ market factors.

Economic obsolescence refers to the reduction in property value due to external factors that affect the market in which the property is located. These factors are typically outside the control of the property owner and can include changes in the economy, shifts in demographics, declining local infrastructure, environmental issues, or changes in zoning laws, among others. When these external forces negatively impact the desirability or utility of a property, the economic obsolescence is recognized.

Understanding this concept is crucial for appraisers, as it highlights the importance of market conditions in determining property values. For instance, if a new highway is built that reroutes traffic away from a commercial district, the properties in that area may experience economic obsolescence due to decreased visibility and access, irrespective of their physical condition or functional utility.

The other types of obsolescence include physical obsolescence, which is related to the property's condition; functional obsolescence, which relates to design or layout issues that make the property less desirable; and internal factors, which primarily deal with characteristics specific to the property itself. Each plays a distinct role in appraisal, but economic obsolescence specifically relates to external market pressures impacting property value.