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.
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; Northeast Tenn. at $268.77 million; Alabama at $265.52 million; Georgia at $254.62 million; and Mississippi at $146.41 million.
The 2016 sales figures include new and existing single-family homes, condos and duplexes as well as commercial properties, and represent the sales volume of both listing and selling sides of a real estate transaction, which involve a buyer and a seller.
“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,” President Dick Leike said in a press release announcing the results. “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.”
Brentwood-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.
“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.”
Steve Brown, president of Crye-Leike Residential Sales, said productivity per agent helped the company exceed its goals.
“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.”
Brown reported that within Crye-Leike’s Central Arkansas Region, it averaged over 14 sales per agent; in Huntsville, Ala, it averaged 11.9 sales per agent; in its Memphis, Tenn. 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 Brown. “Our company’s overall is 10.4 sales per agent. Although that’s not bad, the areas cited 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 Crye, “barring an uncontrollable event in the global economic picture.”