Tech Layoffs Driving Declines in Pending Home Sales Nationwide

As potential buyers encounter high borrowing costs and an unstable technology job market, home sales across the country have decreased to their lowest level in almost two years—with Seattle, WA, experiencing the most significant impact from this downturn.

A recent report from Redfin indicates that pending home sales in the Seattle region fell by 15.6% year-over-year in July. This represents the most substantial decline among major metropolitan areas in the U.S., as potential buyers contend with high prices and job uncertainty resulting from recent layoffs in the tech sector.

Seattle’s decline in pending sales was the most pronounced among all major U.S. metro areas in July, surpassing other declining markets such as Houston (-14.3%) and Phoenix (-13.3%). In terms of closed home sales, Seattle’s 9.1% decrease ranks it among the five largest declines nationwide, alongside Detroit (-9.3%) and several major Texas cities.

Home prices in the area continue to pose a significant challenge for buyers. With a median sale price of $809,479, home prices in Seattle are approximately double the national average of $408,795, rendering the local market particularly vulnerable to high mortgage rates and caution within the tech industry. Real estate professionals in the area report that changing conditions at major tech companies are directly affecting local home-buying demand.

“Seattle is a tech-driven market, and right now a lot of buyers are feeling cautious about layoffs, AI and job security,” said Chase Costello, a Redfin Premier agent in the Seattle area. “Tech workers aren’t moving between companies—or moving into the area—as much as they used to, and that means fewer people are trading up into new homes.”

‘Driving the Force’ of Layoffs

High-earning technology professionals have historically been the driving force behind the growth of real estate in the Puget Sound region. However, recent layoffs and cost-cutting measures at major companies like Amazon and Microsoft have instigated a chilling effect that impacts not only those directly laid off but also the broader workforce. As reported by Redfin, even employees who remain securely employed are becoming increasingly reluctant to pursue costly mortgages due to the prevailing economic uncertainty.

At the beginning of the year, Amazon announced 16,000 corporate job reductions, following approximately 14,000 layoffs from the previous fall. Microsoft, on the other hand, eliminated around 15,000 positions in two separate rounds of layoffs in 2025, and just last month, an additional 4,800 jobs were cut, with roughly 1,600 of those in the Xbox division.

Layoffs have affected numerous tech positions across both large and small companies, such as T-Mobile, Zillow, Starbucks, Meta, Google, Oracle, Epic Games, Bungie, Salesforce, among others, as outlined in GeekWire’s layoff tracker.

This report follows a transitional phase for Redfin, a Seattle-based company, after it completed its acquisition by Rocket Companies, which is based in Detroit, and the departure of its long-serving CEO, Glenn Kelman. The Seattle-based real estate brokerage has also faced layoffs, reducing its workforce by 450 employees in February 2025.

While Seattle and major Texas markets experienced the most significant declines in home sales nationwide, several regions successfully defied the overall trend. As reported by Redfin, certain markets such as West Palm Beach, Florida (+17.1%), San Francisco (+8.5%), and Milwaukee (+7%) demonstrated notable year-over-year growth in home sales.

In South Florida and the Bay Area, wealthy buyers, who are less affected by price fluctuations, contributed to increased market activity. San Francisco received an additional boost from the ongoing AI boom, whereas Milwaukee thrived due to its relative affordability.

Pending sales also saw a remarkable increase in West Palm Beach (+14.2%) and Milwaukee (+4.5%), highlighting a significant contrast between the high-cost, tech-centric markets in the West and the resilient areas found throughout the rest of the country.

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