Tech layoffs slow down real estate market in Bellevue

BELLEVUE, Wash. — If you’re looking to buy a home, you may find there are fewer properties to choose from.

According to recent data from the Northwest Multi-Registration Service, not only has the number of listings decreased, but the number of people willing to pay for a home with a mortgage rate of 6-7% has also decreased.

That has an impact on the average home price in King County, which fell 7% in February from the same time last year.

But it’s Seattle’s tech hub, the East Side that saw one of the biggest drops with 21%.

“Whenever there is uncertainty in your job as a buyer, you back out,” said Dan Edwards, managing broker at Eastside Real Estate Group.

Between Twitter, Microsoft, Meta and Amazon — more than 5,000 tech workers in Seattle have been affected by a wave of tech layoffs since October.

That’s now affecting Seattle’s once-hot market, Edwards said.

“I got a phone call from someone looking after buying their home, they seemed fine, ready for our permanent home and about two weeks later they said there was now a reorganizing so we’re going to pause,” Edward said.

This is not a mass drop, Edwards said, but rather a weakening in the market after years of sellers enjoying historically high prices and profits.

“The suburbs have the biggest impact because they have the highest price increases,” said Edwards.

The drop has hit hard for those looking to cash in on soaring prices.

Recently retired Mark Griffin and his wife Mary Gleason thought they would sell their Sammamish home for the above asking price and put down a down payment on their new home in Nevada.

But by the time they updated and repainted the house they bought in the late 1990s for $500,000, mortgage rates were already skyrocketing and tech layoffs were imminent.

“We watched it go up, up, up and up.. and then, of course, we decided to take advantage of it and yes, it just started going down,” Gleason said. ‘ Gleason said.

While Edwards said people on the East Side still make a lot of money, Griffin said he and his wife hope to make enough money from the sale of their home to cover closing and retirement costs while leaving a portion of their savings. invest in adult children who still live there. Seattle.

“You get older, you realize that eventually you’re going to pass something on to your children,” Griffin said. “And equity in the home is one of the first things that people cling to.”

In the end, the couple sold their home for 20% less than the asking price, saying it wasn’t enough to cover what they wanted to leave for their children.

But Edwards said the good news is that families like Griffin and Gleason can still sell, once the new reality hits homes.

“You have to be realistic if you want to go out there and expect a lot of offers, you’d be better off pricing at least 8% below the market,” Edwards said.