Final answer:
A parcel of property that increases in value due to its location in an affluent, growing neighborhood exemplifies External Obsolescence, which is the impact of positive external factors on property value.
Step-by-step explanation:
The question posed relates to an understanding of terms associated with the change in property values based on various factors. Specifically, a parcel of property that increases in value due to its desirable location within an affluent and expanding neighborhood serves as an illustration for a unique phenomenon in real estate and urban development. The correct answer to the question is c) External Obsolescence, which pertains to the loss of property value caused by external factors, in this case, a positive one, since it's due to the property's attractive location.
Although 'obsolescence' typically implies a negative connotation, indicating that something is becoming outdated or falling out of use, in this context, the term describes an increase in value due to favorable external conditions. Such conditions could include the socioeconomic status of the surrounding area, proximity to amenities, or broader trends in urban development, among others. This differs from physical, functional, or economic obsolescence, which describe other factors that might depreciate property value, such as the condition of the property itself, design that is out-of-date, or overall economic decline in an area.