Updated on
March 18, 2024

Liquidity Conditions

Written by: 
Landa Team

Liquidity is a common term used in all categories of finance, including personal finance. 

Liquidity describes the ease with which an individual or firm can buy or sell an asset without causing a significant price change. Liquidity is the trade-off between the price at which an asset can be sold and the rate at which it can be sold. 

In other words, how many days does it take to sell a 4-bedroom property at the asking price? The answer to this question is the liquidity level of the property. As you can imagine, many factors can affect the liquidity of a real estate property. 

Stocks remain some of the most liquid assets in the world, sold in a matter of seconds, whereas real estate properties are considered some of the most illiquid assets. Property can take months, even years, to sell.

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