Challenging real estate market claims more victims

Redfin announced a new round of layoffs Thursday, according to GeekWire. The Seattle-based real estate company said 46 managers will be let go and confirmed no agents were impacted.

Redfin, which employs over 4,000 people, has faced multiple rounds of layoffs over the past two years due to a challenging real estate market. The company said it will continue to hire more agents.

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Mortgage rates reached 6.93%  this week, the highest level since July. Experts said this has contributed to increased home listings, partly due to unsold homes remaining on the market. However, Redfin said affordability did not worsen in 2024.

In response to a housing market slowdown in 2022, Redfin laid off staff and discontinued its iBuying program, a service that allowed property owners to sell their homes directly to Redfin without the need for a showing. The company also reduced its workforce by 4%, or 201 employees, in April 2023, followed by another round of layoffs in August 2024.

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Despite these challenges, Redfin reported a 3% revenue growth to $270 million in its most recent quarter, though its net loss increased to $33 million from $19 million in the same period last year.

This latest round impacts managers at headquarters, program and field leadership roles.

The real estate industry has also seen significant changes following a settlement with the National Association of Realtors, which led to a substantial shift in the agent commission structure. Last year, Redfin introduced Redfin Next, a new compensation model for its agents that eliminated salaries and has since expanded to more cities. The company competes with realtor.com, trulia.com and zillow.com.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X and email him here.