Liquidity

Liquidity refers to how quickly and easily an asset can be converted into cash without losing significant value. Cash and stocks are considered highly liquid because they can be sold or accessed almost instantly. Real estate, by contrast, is an "illiquid" asset. Selling a property is a complex, time-consuming process that involves listing, marketing, negotiating, and closing, which can take months. This lack of liquidity is considered one of the primary disadvantages of real estate investment compared to the stock market.