In the real estate market, what does the term "liquidity" refer to?

Liquidity in the real estate market specifically refers to the ease with which an asset can be converted into cash without significantly affecting its market price. Real estate is generally considered to be a less liquid asset compared to other investments like stocks or bonds. While properties can certainly appreciate in value and generate profits, these aspects do not define liquidity. Instead, liquidity focuses on how quickly and easily a property can be sold or how quickly the value can be realized in cash form. This concept is vital for investors who need quick access to cash or who are considering how changes in the market might impact their investment strategies.