Reality or reality means what actually exists, as opposed to what is pretend, or fact as opposed to fiction--
The psychiatrist reported that his patient had a poor grasp of reality.
Reality shows are very popular on television.
Realty or realty means real estate or real property, as in land or buildings--
The realty agent is going to show us some houses today.
He called a realty firm to find out about listing his house for sale.
Now that you know that, you can say--
"The realty agent said that the asking price did not conform to the reality of the housing market."
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