Tennessee-based Crye-Leike, the nation's fourth largest privately-held residential real estate brokerage firm and the largest in Tennessee and the Mid-South, posted a record sales year of $6.36 billion in 2016, the highest sales performance in the company’s 40-year history. In comparison, the company reached its peak sales performance at $6.10 billion in 2006.
Crye-Leike’s $6.36 billion sales volume companywide in 2016 was up 10.8 percent from $5.74 billion through Dec. 2016. These 2016 figures represent Crye-Leike's 3,258 sales associates handling 32,834 closings within a nine-state region, a 4.46 percent increase from the 31,826 closings reported through Dec. 2015.
"Our network of over 3,200 Crye-Leike sales associates has been opening doors and connecting people to the world of homeownership for the past 40 years,” says President Dick Leike. “And during that 40-year period, Crye-Leike is proud to report that we have impacted 629,148 families by helping them realize the dream of homeownership. Homeownership will continue to be one of the most sound long term investments most buyers will ever make."
Crye-Leike's 2016 sales figures include new and existing single-family homes, condos and duplexes as well as commercial properties within a nine-state regional market area (Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Missouri, Oklahoma, and Tennessee). Sales figures also include production from 126 company-owned and franchise offices in operation during 2016 and represent the sales volume of both listing and selling sides of a real estate transaction, which involve a buyer and a seller.
“In spite of historic inventory shortages across all regions in 2016, Crye-Leike was able to increase sales volume by 10.8 percent enterprise wide with a grand total of $6.3 billion in closed business,” said Chief Executive Officer Harold E. Crye. “The 2016 sales goal we set for ourselves was 5 percent, so we outperformed in that respect.
Additionally, Crye-Leike’s overall number of sales units increased by 4.4 percent, while many parts of the United States housing market saw decreases in the number of sales units due to the issues related to the lack of inventory, i.e., new home sales at half their norm; the ‘Where do I go if I sell my house’ mindset. Yet, Crye-Leike still managed to close nearly 33,000 sales,” he added.
“Our agents have been improving their sales skills through live training events such as Ninja and national trainers and speakers at our company conferences, with the results showing up in their per person productivity,” says Steve Brown, president of Crye-Leike Residential Sales. “In the last few years, the national norm for many large real estate firms or franchises is from five to nine sales closed per person per year.”
Mr. Brown reported that within Crye-Leike’s Central Arkansas Region, it averaged over 14 sales per agent; in Huntsville it averaged 11.9 sales per agent; in its Memphis region, 11.6 sales per agent; and in its Northwest Ark region, it averaged 12.2 sales per agent.
“So in spite of our size, Crye-Leike is closing high numbers per agent compared to our peer firms and franchises in the United States,” says Mr. Brown. “Our company’s overall is 10.4 sales per agent. Although that’s not bad, the areas sited are exemplary.”
For 2017, CEO Crye says the company has increased its sales volume goal to $6.7 billion which is a 7 percent increase.
“Even though we know we will face headwinds of higher rates (around mid-to upper 4.5 percent); continuing shortages of new construction (lack of lots, tougher lending standards and a shortage of labor); lack of existing inventory for sale and student loan debt, we still think that the overall economic growth, improving employment picture and more household formation, will have an overall positive impact and increase both volume and number of sales,” says Mr. Crye, “barring an uncontrollable event in the global economic picture.”
Crye-Leike also saw a record usage of its other core services, insurance, title, relocation, property management, mortgage and home services.
“We know that consumers prefer a ‘full service’ company when given that choice due to the convenience, efficiency and dependable nature of completing a real estate transaction under one roof, alongside of a trusted brand, like Crye-Leike,” says President Leike.
In summary, Crye-Leike’s West Tennessee region outperformed all other Crye-Leike regions reporting $1.83 billion in sales in 2016. Its Middle Tennessee region ranks No. 2 in sales performance at $1.36 billion, followed by Central Ark. at $ 745.92 million; Northwest Ark. at $522.74; Southeast Tenn. at $438.40 million; East Tenn. at $268.77 million; Alabama at $265.52 million; Georgia at $254.62 million; and Mississippi at $146.41 million.
Crye-Leike’s Southeast Tennessee Region includes sales from its 260 sales associates located in seven company-owned offices, including Chattanooga and Ft. Oglethorpe.
Crye-Leike's year-end sales volume in Southeast Tennessee totaled $438.40 million in 2016, up 7.80 percent from $406.67 million through 2015, representing 2,447 in year-end closings compared to 2,482 in 2015. Its average sales price year-to-date in 2016 was $ 179,160 compared to $163,847 in 2015.
Crye-Leike’s Southeast Tennessee listings and sales are represented in and around Bledsoe, Bradley, Hamilton, Marion, McMinn, Meigs, Monroe, Polk, Rhea and Sequatchie counties and Catoosa County, Ga.
Brentwood-Tenn. based Crye*Leike Franchises, Inc., the real estate franchisor subsidiary of Crye-Leike, disclosed a year-end sales volume of $523.57 million in 2016, up 17.07 percent from $447.22 million through 2015, representing 3,500 year-end closings. Crye*Leike Franchises ( www.crye-leike.com/franchises) has 287 sales associates in 29 independently owned and operated franchise offices.