Are We Headed into a Recession?

Laid off employee in recession

It’s pretty big news lately; Microsoft, Amazon, and other tech companies have laid off more than 60,000 employees in the last year, according to CNBC. It’s all part of restructuring after we experienced a 12-year run-up in the market with record-low interest rates. So many big cap companies with high multiples are adjusting to higher interest rates to battle inflation and the thought of a possible recession on the horizon.

It’s hard to believe living in New Hampshire when we had the second lowest unemployment rate in the country in July 2022 at 2% that we would see the massive layoffs affecting other parts of the country. Even today, at 2.6%, New Hampshire has one of the lowest unemployment rates in the country.

BUT LOOK WHAT’S HAPPENING

  • Amazon is laying off 18,000 employees
  • Google 12,000 employees
  • Microsoft 10,000 employees
  • Salesforce 7,000 employees
  • Meta (Facebook) 11,000 workers
  • Snapchat 1,300 employees
  • Twitter 3,700 employees
  • Carvana 2,500 employees
  • Peloton 1,300 workers
  • Goldman Sachs 8% of workforce
  • DoorDash 6% of workforce
  • Vimeo 17% of workforce
  • Tesla 229 workers
  • DocuSign 9% of workforce
  • OpenSea 20% of workforce
  • Cameo 25% of workforce
  • Master Class 20% of workforce
  • Cassidy Digital 33% of employees
  • Cisco 5% of employees
  • Ford Motor Company 3,000 employees
  • Robinhood 9% of workforce
  • Coinbase 20% of employees
  • Crypto.com 20% of workforce
  • Lyft 700 employees
  • DirecTV 10% of workforce
  • Bed Bath & Beyond 20% of its workforce

Crunch Base News Reported more than 21,000 workers in the US-based tech companies have been laid off so far in 2023 and last year more than 107,000 jobs were slashed from the public and private tech companies to confront rising inflation rates, higher interest rates, and a tumultuous stock market.

The layoff bug that’s hammering major tech companies is also affecting the real estate industry, especially the larger publicly traded companies. Redfin, for example, saw its stock drop 93% from its all time high even though it has jumped up a bit in January. Instead of focusing on single brokerage, the company acquired a huge portfolio of homes and with the run up in interest rates and changing market conditions, the company announced the closure of its RefinNow iBuying Division, which purchased homes from sellers with the intention of flipping them for a profit. As a result, Redfin has cut close to 30% of its employees during the past year.

Online real estate company, Opendoor, is another example. The company cut 18% of its workforce due to rising interest rates affecting the market. This involved over 1,300 employees, including positions sealed back earlier this year. Opendoor is another form of iBuying where they offer cash for homes at a discount and then make repairs to the homes and hopefully resell them or a profit.

Zillow experienced similar issues back in 2021. The company took a hit and shut down its iBuying business model. Their stock dropped almost 79% from its all time high like Redfin did, however, it has bounced back up a bit in 2023 and is focusing on its core business and its super app which draws millions of monthly visitors across its digital platforms. In any case, the Seattle-based company had to react to market conditions and laid off approximately 300 workers.

Compass, another real estate brokerage, just announced its third layoffs in one year. The rapidly growing company’s CEO indicated it was planning for a significant decline in the market this year. In June, it was reported that the company laid off 450 employees in marketing and administration support and in October, it let go half of its tech division, which at the time included 1,500 workers.

Anywhere Real Estate, Inc., the parent company of real estate brokerages such as Coldwell Banker, Sotheby’s International Realty, and Century 21, announced on January 10th that it has laid off 11% of its workforce since June of 2022 due to the housing market struggling. Also, the company said it was closing its iBuying business, RealSure.

REMAX announced last year that 17% of its staff would be let go by the end of the year.

CBRE, a huge commercial real estate company, likewise announced a round of layoffs in December. 

Clear Capital, a real estate appraisal technology company, laid off 27% of its workers this past fall involving 378 employees.

Finance of America Mortgage laid off hundreds of employees, First Guaranty Mortgage Corp. laid off 80% of its employees, Flagstar Bank cut its staff 20% involving 420 employees, Fly Homes cut 40% of its staff or 300 employees in addition to 20% or 200 employees previously, Homepoint laid off 500 employees, Homeward cut 25% of its staff, Homie (a discount brokerage) laid off 159 employees and at Interfirst Mortgage, nearly 500 employees were let go over the past 12 months and at Home Light 19% were let go.

America’s largest bank, JP Morgan Chase, laid off more than 1,000 mortgage employees in June, Keller Mortage (affiliated with Keller Williams Realty) laid off 150 new hires and many more at a later dated, Rocket Mortgage offered 8% of its workforce voluntary buyouts, Vacasa (vacation rental startup) cut 3% of its workforce and so many other real estate startups and mortgage companies, including Flagstar, Wells Fargo, Ameri First Mortgage, Envoy Mortgage, Finance America, Homepoint Financial, Interfirst Mortgage and Loan Depot (which will cut 4,800 jobs), plus a multitude of other mortgage and lending companies who will also be making cuts to their workforces. This of course, does not include a huge list of major retailers throughout the country that have announced store closings and major cuts throughout their industry.

So after looking at all of the above, New Hampshire looks like a very solid state with a low unemployment rate of 2.6%; however, looking ahead into 2023 as inflation begins to taper, is the Federal Reserve still on a mission and will interest rates continue to rise? What effect will it have on property values going forward? And most importantly, do we see a looming recession on the horizon? 

…Only time will tell.

This article was written by Frank Roche, president of Roche Realty Group in Meredith & Laconia, NH. Frank can be reached at (603) 279-7046. Please feel free to visit www.RocheRealty.com to learn more about the Lakes Region and its real estate market.

Summer in the Lakes Region on Little Squam

Ready, Set, Summer in the Lakes Region!

As the rumble of motorcycle engines fades into the background, the Lakes Region of New ...
Read More →
Manchester, New Hampshire, USA Skyline on the Merrimack River at dusk.

New Hampshire Cities in Top Hottest Housing Markets

New Hampshire keeps showing up on the radar as one of the hottest housing markets ...
Read More →
South Down Shores & Long Bay: Real Estate Market Analysis

South Down Shores and Long Bay: Market Trends

South Down Shores and Long Bay on Lake Winnipesaukee are two very popular water access ...
Read More →
Lake House Dreaming: Steps to Make It a Reality

Lake House Dreaming: Make It a Reality

Owning a waterfront home in New Hampshire’s Lakes Region is a treasured experience. For many ...
Read More →
Memorial Day

Beyond the BBQ: A Symphony of Remembrance and Summer Joy in the NH Lakes Region

Memorial Day serves as the official kick-off to summer in the Lakes Region. Towns ready ...
Read More →
Welcome to New Hampshire's Lakes Region

Welcome to New Hampshire’s Lakes Region

New Hampshire’s Lakes Region is one of the most stunningly beautiful places in the United ...
Read More →
The Granite State: Top Spot for Relocation in 2024

The Granite State: Top Spot for Relocation in 2024

New Hampshire just garnered major recognition as the best state to relocate to in 2024 ...
Read More →
Real Estate Sales Insights: Lakes Region Market Update

Real Estate Sales Insights: Lakes Region Market Update

It’s hard to believe we’ve already churned through 4 months of 2024. I researched the ...
Read More →
Market Trends – Spring 2024

Market Trends – Spring 2024

As a Realtor®, I’m always paying attention to the real estate market. I’m often asked ...
Read More →
Temperance Tavern in Gilmanton Sold

The Historic Temperance Tavern in Gilmanton Sold

Gilmanton—According to Frank Roche of Roche Realty Group in Meredith, the historic Temperance Tavern in ...
Read More →
Needs and Wants When Buying a Home Balanced

Balancing Needs and Wants When Buying a Home

In the current housing market, where choices are often limited, and demand frequently outstrips supply, ...
Read More →
Only two homes for sale at South Down Shores and Long Bay on Lake Winnipesaukee pictured above

Spotlight on Homes: New Hampshire Market Analysis

At present time, there are 1,007 single-family homes for sale in New Hampshire. The median ...
Read More →
New Hampshire Ranks High in Recent Studies

New Hampshire Ranks High in Recent Studies

Every day in our industry, we see how rising home prices have made it more ...
Read More →
South Down Shores Barn Complex Transformation

South Down Shores Barn Complex Transformation

In 1981, the transformation of Laconia’s scenic South Down Farm began, converting the former 126-acre ...
Read More →
Massachusetts and New Hampshire - a Tale of Two States

Massachusetts and New Hampshire – a Tale of Two States

Most of my articles talk about housing, trends, home values, and the desirable lifestyle we ...
Read More →
Spring flowers at the Belknap Mill in Laconia, New Hampshire

Spring Trends in Lakes Region Properties

It’s been one of those winters, or should I say lack of winters, that we ...
Read More →
Sales Snapshot: The Current Highest Prices Property For Sale in The Lakes Region Is on Governor's Island for $12,998,000

Sales Snapshot: New Hampshire’s Affordability Challenge

As we spring into March and approach our busy spring selling season, I thought I’d ...
Read More →
Gunstock Mountain in Gilford, NH

Gunstock: Gem of the Lakes Region

Nestled among the stoic peaks of the Belknap Mountain range in the heart of New ...
Read More →
Roche Realty Group Announces Top Producers for 2023

Roche Realty Group Announces Top Producers for 2023

Meredith — Frank Roche, president of Roche Realty Group, announced the top five producers for the ...
Read More →
AI and the Future of Real Estate

AI and the Future of Real Estate

Imagine, if you will, looking at a mysterious picture box filled with a whole world ...
Read More →
Prices rise Broadview Condominiums originally sold to the developer for $500,000

Prices Rise Ahead of Super Bowl Sunday

We’ve got a great match coming up for this year’s Super Bowl…The 49ers vs. the ...
Read More →
Smart Moves in Condominium Ownership Samoset

Smart Moves in Condominium Ownership

Here in the Lakes Region, a good part of our residential housing inventory is in ...
Read More →
Land Sales Unveiled: New Hampshire's 2023 Market

Land Sales Unveiled: New Hampshire’s 2023 Market

New Hampshire The Granite State… true to its motto, “Live Free or Die”, which encapsulates ...
Read More →
Exploring Cash Sales Dynamics in Lakes Region Real Estate

Exploring Cash Sales Dynamics in Lakes Region Real Estate

I was at a sales meeting at Roche Realty Group the other day, and we ...
Read More →
Roche Realty Meredith

Roche Realty Group Reports Over $150 Million in Sales

               Meredith- Frank Roche, President of Roche Realty Group, Inc., ...
Read More →
Lincoln, New Hampshire Riverwalk Resort

Lincoln, New Hampshire: From Mill Town to Ski Destination

Tucked in the heart of New Hampshire, sprawling across 131 square miles of varied terrain, ...
Read More →
Lakes Region Towns Stand Out For Their Spirit of Giving

Celebrating the Spirit of “Giving” in the Lakes Region

Nestled in the picturesque landscapes of New Hampshire, the Lakes Region stands out not only ...
Read More →
AI's Impact on the future of real estate

Real Estate’s Future: The Impact of AI

The other day, I was talking with my son Chris about the changes in the ...
Read More →
NH Lake Sales Activity - picture of lake with mountains and homes

Lakes Region Waterfront Sales 2022 vs. 2023

We’re getting near the end of the year, and I thought I would pull up ...
Read More →
Winter Snowmobile

Real Estate in a Winter Wonderland

As I drove around the other day with my kids, I was looking at some ...
Read More →
Toys for Tots Drive

Roche Realty Host Annual Toys for Tots Drive

As the holiday season approaches, Roche Realty Group is excited to announce the kickoff of ...
Read More →
Small Business Saturday New Hampshire

Small Business Saturday Living Gratefully in New Hampshire

We have so many things to be thankful for here in New Hampshire: plenty of ...
Read More →
Annie Brown Joins Roche Realty Group

Annie Brown Joins Roche Realty Group

Meredith — Frank Roche, President of Roche Realty Group, Inc., with offices in Meredith and ...
Read More →
Gunstock Mountain in Gilford, NH

Gunstock Upgrades for Winter as Real Estate Shows Resilient Growth

As the leaves of New Hampshire’s forests transition from the vibrant hues of fall to ...
Read More →
Preserving New Hampshire's Lakes

Preserving New Hampshire’s Lakes: A Community Effort

With over 250 lakes and ponds throughout New Hampshire’s Lakes Region, there are unlimited outdoor ...
Read More →
Home Inspections — The Uninspected Abode: A Spine-chilling Tale of Regret and Terror!

The Uninspected Home: A Spine-chilling Tale of Regret and Terror!

One night, not many years ago, in a quaint, somber town nestled amidst the haunting ...
Read More →
Interest Rates

Interest Rates Impacted by Treasury Yields

It looks like the national picture for housing stats has not improved in recent months; ...
Read More →
Local Housing Crisis: Challenges and Solutions

Local Housing Crisis: Challenges and Solutions

Our communities are facing a shortage of both residential and commercial properties, a scenario that’s ...
Read More →
Fall Splendor In New Hampshire

Fall Splendor in New Hampshire

New Hampshire in the fall is akin to stepping into a live canvas painting — ...
Read More →
Samoset Condominiums on Lake Winnipesaukee

Condominium Sales Surge in New Hampshire’s Lakes Region!

As we start entering October’s bright fall colors, I thought I’d take a look at ...
Read More →
Empowering your offer

Empower Your Offer in a Sizzling Real Estate Market!

As a seasoned real estate professional, I often consider the market conditions to keep myself, ...
Read More →
Reviews of New Hampshire's Lakes Region

Reviews of New Hampshire’s Lakes Region

We’ve had a great summer in New Hampshire’s Lakes Region, and we’re approaching the brilliant ...
Read More →
Waterfont Sales Activity Wolfeboro, New Hampshire

Waterfront Sales Activity in the Lakes Region

As we head into September, I have compiled data and insight into what is happening ...
Read More →
Labor Day Weekend

Labor Day Weekend in The Lakes Region

Labor Day Weekend has arrived, and the weather forecast for the Lakes Region looks fantastic, ...
Read More →
Interest Rates

The Mortgage Interest Rate Dilemma

This past week, we saw an increase in mortgage rates following a rise in bond ...
Read More →
Best State To Live In — New Hampshire at #3

New Hampshire 3rd Best State To Live In!

WalletHub just released its rankings of the best state to live in for 2023. It’s ...
Read More →
City/Town Comparison can make the research process easier

City/Town Comparison For Your Move

Some studies place moving to a new location as one of the top ten most ...
Read More →
New Hampshire Real Estate Lacks Inventory

New Hampshire Real Estate Inventory Crisis

A Multifaceted Analysis of Rising Interest Rates and Beyond New Hampshire is currently facing a ...
Read More →
Peaks of New England

Exploring the Peaks of New England

In my younger years in school, I always loved geography. Living in New Hampshire, there ...
Read More →
Climate Exodus: Insurance Companies Seeking Refuge from High-Risk Sates

Climate Exodus: Insurers’ Fleeing High-Risk States

Flooding, Forest Fires, Heat Waves, Tornados, oh my! The recent stretch of weather has certainly ...
Read More →

Leave a Comment