This is an industry I actually know a teensy bit about. Normal people don't need to sell a house in two weeks. That is an abnormal condition brought on by stupid, disinterested money flooding the market and the idea that everyone must be hyper-mobile all the time is one brought on by the more deranged, "humans exclusively acting as work producing automatons" part of a market economy. Solidity and permanence are valuable. I'd go so far as to say that when you take into account the benefits of long-term residence and ownership--and they are benefits you will not see in your ML model, such as a cohesive neighborhood where you actually know and maybe even interact with the people who live around you--that it might even be a positive to discourage market thrash. You know. For humans, and not investors.
so you do agree that it takes time to buy and sell real estate. The reason liquidity is better for market efficiency is that liquidity allows the price of the asset to move towards the "true" price, where either party of the transaction doesn't feel they've been cheated.
If you claim that house flippers are "cheating" the long term buyers, then you must also agree that the market is currently inefficient, and that the long term buyers is paying above the "true" price. Liquidity would actually alleviate that problem!
if you don't agree that flippers are cheating their price higher, then you must also agree that the long term buyers are getting a better deal.
So either way, liquidity makes the market more efficient, and results in the "true" price of the asset to be revealed sooner and easier.
A lot of people buy starter homes, or homes in areas they do not plan to stay 10+ years, or homes they outgrow. That’s all normal too.
