Crye-Leike Reports Active Second Quarter Sales
Even though the real estate market seems to be flat because of escalating mortgage interest rates, a second quarter report from the largest real estate firm in Tennessee appears to be unaffected.
Memphis-based Crye-Leike, Realtors, the nation’s tenth largest real estate firm, reported $826.63 million in sales during the second quarter, an increase of 3.8 percent over $796.65 million this same period last year. That volume increase was generated on the sale of 5,738 properties handled by Crye-Leike’s 2,200 sales associates in six regional areas of the Midsouth. Year-to-date sales volume companywide for Crye-Leike was $1.46 billion, up 8.6 percent from $1.34 billion through June 1999. Year-to-date closings were 10,357, a 4.7 percent increase from the 9,893 closings reported through June 1999.
For the month of June, Crye-Leike reports $303.35 million in sales, down marginally at 1 percent from $306.38 million last year. These figures represent 2,072 units sold in June, a 1.1 percent decrease from 2,095 closings reported for the same period last year. Average residential sales prices in June for Crye-Leike’s major metro areas compared to June 1999 were: $124,326 in Chattanooga, down from $136,418; $148,051 in Memphis, down from $154,105; and $146, 938 in Nashville, up from $132,855.
Crye-Leike’s disclosed sales figures include new and existing family homes, condos and duplexes as well as commercial properties. Sales figures also represent the sales volume of both listing and selling sides of a real estate transaction, which involve a buyer and a seller.
Harold Crye, chief executive officer of Crye-Leike, notes that the solid pace of company sales shows that homebuyers are largely undeterred by the fact that mortgage rates are up from last year. “In today’s market, buyers don’t get spooked by higher rates. They have many options when it comes to home financing,” said Crye.
From a company perspective, Crye sees Crye-Leike not being as “flat” as the current real estate market. “Crye-Leike is running ahead of the market because we have more agents, a diversity of services to meet homebuyers’ and home sellers’ needs, and a broad base of branch offices throughout the Midsouth.”
Crye-Leike of Nashville Inc. and Crye-Leike of Chattanooga Inc. continue to share a strong percentage of growth in quarterly sales, both up 21 percent in the second quarter from a year earlier.
CRYE-LEIKE OF NASHVILLE INC.
In the Nashville metro area, where the company started operations in 1992, Crye-Leike’s second-quarter sales showed continued robust activity. Second-quarter sales of $311.88 million in the Nashville area represent a 21.8 percent increase. Its 2,096 real estate property sales in the second quarter this year represent a 5.4 percent increase over comparable quarter results last year.
Year-to-date sales volume for Crye-Leike of Nashville was $551.63 million, up 30.2 percent from $423.63 million halfway through 1999. These figures represent 3,780 in property sales, a 15.2 percent increase over comparable year-to-date results last year. The local sales volume in June this year was $109.89 million, up 13.9 percent from last June, which represents 746 closings, a 2.8 percent increase from last year.
Crye anticipates a leveling off of sales in the Nashville metro area next quarter. “The initial effects of the Folk-Jordan merger are showing signs of wearing off,” said Crye. The company acquired Folk-Jordan Better Homes & Gardens’ operations in June 1999.
CRYE-LEIKE OF CHATTANOOGA INC.
In Chattanooga, Crye-Leike has increased its market share in the two years it has had a presence there. Sales volume in the second quarter totaled $73.17 million, up 21 percent, and property sales totaled 625, up 30.5 percent from same-quarter results a year earlier. Year-to-date sales volume totaled $123.36 million, up 29.1 percent, and property sales totaled 1,092, a 37.2 percent increase from the sales reported halfway through 1999. The month of June showed a local sales volume of $31.07 million, up 17.2 percent from last June, representing 250 units closed, a 42 percent increase from the same period last year.
CRYE-LEIKE INC. (MEMPHIS)
Company sales in Memphis depict a slightly different view of the real estate market compared to Crye-Leike’s sales in Nashville and Chattanooga because of the company’s established beginnings since 1977, notes co-owner Dick Leike.
“Crye-Leike has a stronger market share in Memphis which more accurately reflects the ups and downs of the real estate market in Tennessee,” said Leike. “Memphis’ sales may be slightly off from last quarter, but companywide, we haven’t seen demand taper off. People are still house hunting, figuring what they can afford and moving ahead with their housing purchases.” Why asks Leike, “Because homeownership is a stable and safe long-term investment for consumers.”
Crye-Leike reports local sales volume in the Greater Memphis area market to be $425.19 million in the second quarter this year, down 11.5 percent from $480.23 million last year. Crye-Leike’s report has the Greater Memphis area including West Memphis, Ark., and Olive Branch and Southaven, Miss. Second -quarter unit sales totaled 2,843, down 15.8 percent from same-quarter results a year earlier.
Year-to-date sales volume for Crye-Leike in the Greater Memphis area was $762.24 million, down 7.7 percent from $825.69 million through June 1999. Year-to-date closings were 5,217, which is a 10.3 decrease from the 5,817 closings reported through June 1999. June sales of $156.18 million represent a 14.9 percent decrease from $183.42 million over comparable monthly results last year. There were 1,021 real estate closings in June, a 14.4 percent decrease from 1,193 closings reported for the same period last year.
CRYE-LEIKE OF ARKANSAS INC. (JONESBORO)
Crye-Leike established its Jonesboro, Ark. branch office in December 1999, significantly increasing its market share over its first six months of operation. Sale volume in the second quarter of 2000 totaled $11.81 million, up 106.1 percent, and property sales totaled 131, up 65.8 percent from same-quarter results three months prior. Year-to-date sales volume totaled $17.54 million, representing 210 units sold. The month of June this year showed a local sales volume of $4.64 million, representing 42 units sold.
CRYE-LEIKE OF EAST TENNESSEE INC. (JOHNSON CITY)
Crye-Leike established its first East Tennessee office in Johnson City, Tenn. in January 2000. Year-to-date sales volume totaled $6.29 million, representing 58 units sold. The local sales volume in June this year was $1.56 million, with 13 units sold.
Crye-Leike (www.crye-leike.com) , the largest real estate firm in Tennessee and the Midsouth, has over 2,200 sales associates who operate in 46 branch offices, located in 19 counties and four regional areas in Tennessee, Chattanooga, Johnson City, Memphis and Nashville, as well as in the states of Arkansas and Mississippi. Crye-Leike also has three franchise offices in Oxford and Tupelo, Miss. and Monteagle, Tenn. As a privately held company with over 480 employees, it attained record sales of $3.3 billion corporatewide in 1999, the best year reported in company history. Nationally, Crye-Leike is ranked No. 10 among the nation’s top 500 residential real estate brokerage firms and No. 3 among the nation’s largest 161 privately owned independent real estate companies, as reported in May 2000 by REAL Trends Magazine.
Crye-Leike, Realtors was established in 1977 in Memphis by Harold Crye and Dick Leike. Operations were expanded in 1992 into the Middle Tennessee real estate market , in 1997 into the Chattanooga market and in 1999 into East Tennessee.
For real estate information on residential and commercial property listings available for sale in Tennessee, Mississippi or Arkansas by city or county, visit Crye-Leike’s Web site at www.crye-leike.com.