SEATTLE -- Real estate giant Redfin is closing its home-flipping unit and laying off 13% of its staff.
The Seattle-based company is making the move because its home-flipping business is losing money, CNN reported.
Redfin is following the lead of competitor Opendoor, which recently revealed it had sold too many homes for a loss.
Both companies are known as "iBuyers," which use computer algorithms to purchase homes in bulk and then flip them.
Now the "iBuying" companies say high interest rates and the cost of renovations are rising faster than they can predict.
Executives at both Redfin and Opendoor are both predicting a slowdown in the real estate market for 2023.