Tech layoffs chill outlook for Seattle-area home sales

Single-family sales price appreciation stagnated last month in the Seattle metro area, and that was before Amazon said it's cutting over 2,300 jobs here.

Across the Northwest MLS, closed home sales came in 4% below last October’s total. Pending sales, which give some signal about next month’s sales, were down 6% from the same time last year.

The news has tightened the lid on the market. People don't have the appetite to sign up for a mortgage due to increasing job uncertainties. Concerns about the U.S. economy, including creeping unemployment and minimal new job creation, may have contributed to a zero increase in contracts to buy existing houses in September.

The monthly report on contracts from the NWMLS also shows that these transactions declined 4.0% from the same month in 2024. Contracts often precede actual sales by one to two months. They were flat last month despite several weeks of falling mortgage rates, with the average for a fixed-rate, 30-year loan falling to 6.19% last week.

There was a 27% increase in total number of properties listed for sale year-over-year, with 18,791 active listings on the market at the end of October 2025, compared to 14,795 at the end of October 2024. When compared to the previous month, active inventory decreased by 1,261 listings (-6.3%), down from 20,052 in September 2025.

Pending sales fell 9% across the region, although again, King County’s sales drop looks a bit like some mean reversion after a standout 2024 number.

The number of closed sales decreased by 4% year-over-year (6,222 in October 2025 compared to 6,479 in October 2024). When compared to the previous month, the number of closed sales increased slightly by .8%, up from 6,170 sales in September 2025.

The impact of these layoffs multiply. For every one layoff, there are another 10 teammates or co-workers who now feel a little less confident in their own employment prospects.

The Seattle-Bellevue metro area, excluding Tacoma and Everett, lost 14,900 jobs between August 2024 to August 2025, Then came Amazon's announcement, followed by news that energy, life science, medical device and government service companies cut or furloughed hundreds of employees last week.

Perhaps softening the blow somewhat, despite the lack of official jobs data for September or more recent weeks, the Federal Reserve was widely expected to cut a key interest rate on Wednesday. While inflation has been rising somewhat in recent months, partly due to the government’s tariffs on imported goods, the Fed is more concerned now about a shaky job market. Cutting the rate could encourage businesses to bolster hiring.

“Prospective homebuyers are still cautious as they face uncertain economic conditions,” Lisa Stutevant, chief economist for the mid-Atlantic-based Bright MLS, said last week in a statement. “The push and pull of lower rates and rising economic uncertainty means that home sales activity is likely to remain steady through the fourth quarter, with total 2025 transactions ending only slightly above last year.”

Mortgage rates are heading toward 6%, a level Yun said over the summer would prompt numerous homebuyers to go ahead with purchases they may have been hesitant about. The supply of houses for sale also continues to grow across the country, another positive sign.

“Looking ahead, mortgage rates are trending toward three-year lows, which should further improve affordability, though the government shutdown could temporarily slow home sales activity,” Yun said.