What is the main principle involved in progression and regression related to overbuilding for an area?

The main principle involved in progression and regression related to overbuilding for an area is conformity. This principle refers to the idea that properties will achieve their highest value when they are consistent with the characteristics of the neighborhood or surrounding areas. When there is overbuilding, which means that there is an excessive supply of properties compared to demand, it can lead to a decline in property values.

As properties or developments that do not conform to the characteristics of a neighborhood are introduced, they can negatively impact the overall value of surrounding properties. For instance, if too many high-end homes are built in an area that is predominantly mid-range homes, the higher-priced homes may not sell well, leading to regression in value for all properties in that vicinity.

Conformity emphasizes the importance of balance and similarity in property types to maintain overall market stability. In contrast, the other options address different concepts that may not directly relate to the specific interaction of progression and regression in the context of overbuilding. Contribution relates to the value that a particular component adds to a whole, competition addresses market dynamics among sellers, and the cycle of change pertains to the broader economic or development trends affecting real estate.