What factors can influence property value over time?

The correct answer highlights that location and market trends are fundamental factors influencing property value over time.

Location plays a critical role in real estate valuation. Properties in desirable regions often command higher prices due to access to amenities, quality schools, and overall desirability. Additionally, location affects the potential for future growth, which can significantly enhance property values.

Market trends also heavily influence property value. These trends reflect the broader economic conditions, such as shifts in demand and supply, which can result in price fluctuations. For instance, a booming economy may lead to increased demand for housing, pushing up prices, while an economic downturn could have the opposite effect.

The other options, while relevant to real estate, do not have the same direct and overarching impact on property value as location and market trends do. Interest rates and mortgage terms, for example, affect buyers' purchasing power and financing options but do not influence the intrinsic value of the property itself. The owner's personal financial situation can play a role in individual transactions, rather than affecting overall property values on a broader scale. Government regulations, while they can impact certain property values through zoning or taxation, are typically secondary to the more immediate influence of location and market trends.