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Pieces of the pie: the Janet Jones Co. has the biggest slice of the $143 million Little Rock housing market.

Dozens of real estate firms compete in the Little Rock residential market.

But the playing field traditionally has been dominated by a handful of companies. Those firms keep internal tabs on who has the biggest slice of the pie.

Who's No. 1 these days?

That depends on what measuring stick is used and how the playing field is defined.

For most who analyze the residential market, however, the bottom line is dollars, not the number of homes sold.

And the heart of the Little Rock market lies in three areas real estate agents know as Zones 3, 5 and 7. In those zones, $143 million worth of houses were sold during 1991.

Those who sell the most real estate in the three key zones probably have the largest slices of the Little Rock pie.

The Janet Jones Co. carved out the biggest portion of residential sales in the area surveyed last year.

According to the numbers crunched by Arkansas Business, the 12-year-old firm had an 18.16 percent market share in the city's three key zones. That amounted to almost $25.8 million in commissioned 1991 sales.

The survey took into account the 60/40 commission split if the listing agent didn't represent the buyer. For example, if a $100,000 home was listed by "Company A" but the buyer was represented by "Company B," the first company received credit for $60,000 and "Company B" was credited for $40,000.

The numbers were obtained from the Central Arkansas Regional Multiple Listing Service, which tracks individual residential sales in 31 zones in Pulaski, Faulkner, Saline and Lonoke counties.

Five other companies held at least a 5 percent market share in the three zones surveyed for 1991. They were:

* McKay & Co. -- 14.56 percent or $20.7 million in sales.

* Rector Phillips Morse Inc. -- 13.4 percent or $19 million in sales.

* Coldwell Banker McKinney & Co. -- 9.93 percent or $14.1 million in sales.

* Re/Max Affiliates Realty -- 6.22 percent or $8.8 million in sales.

* Adkins McNeill Smith & Associates -- 5.22 percent or $7.4 million in sales.

The combined performance of those six firms accounted for just more than two-thirds of the dollar volume sales in the three zones.

How important are Zones 3, 5 and 7?

Almost one of every three homes sold in the four-county area is located in one of the zones.

In terms of dollar volume, almost half of all sales recorded by CARMLS involved homes in the three areas (referred to as "z" areas by real estate agents).

The most lucrative zone is Z-7. Its boundaries are the western city limits, Base Line Road, Old Stage Coach Road, Interstate 430 on the south and east and the Arkansas River on the north.

About 15.49 percent of all 1991 home sales recorded by CARMLS occurred in the area, which is home to subdivisions such as Pleasant Valley, Hickory Creek and Longlea.

Last year, 654 homes were sold in Z-7. Those sales amounted to more than $77.8 million, an average sales price of $119,082.

But The Janet Jones Co. wasn't No. 1 in Z-7.

McKay & Co. had the biggest piece of the action with a 16.42 percent market share. The company, led by Randy Alexander, had almost $13.1 million in Z-7 sales. The performance was powered by sales of $4.7 million in the third quarter and $3.9 million in the fourth quarter.

"We have been a force ... pretty much since we started 20 years ago," Alexander says. "We've always watched market share. In the years before CARMLS, we counted for-sale signs to keep up with what the competition was doing."

Seven other firms had at least a 5 percent market share in Z-7. They were:

* The Janet Jones Co. -- 14.96 percent or $12 million in sales.

* Rector Phillips Morse Inc. -- 14.45 percent or $11.5 million in sales.

* Coldwell Banker McKinney & Co. -- 9.95 percent or $8 million in sales.

* Re/Max Affiliates Realty -- 6.85 percent or $5.5 million in sales.

* Real Estate Central-Ward Gibson -- 5.63 percent or $4.5 million in sales.

* Rainey Realty Inc. -- 5.46 percent or $4.4 million in sales.

* Prudential McKay Properties--5.32 percent or $4.2 million in sales.

The eight firms accounted for 79.04 percent of Z-7 sales during 1991.

Other Zones

The second-largest zone is Z-5. Its boundaries are I-430 on the west, Interstate 630 on the south, University Avenue on the east and the Arkansas River on the north.

The zone is home to subdivisions such as Leawood, Robinwood and River Ridge. Z-5 accounted for 9.4 percent of the homes sold in the four-county area.

The share was 11.5 percent in terms of the dollar volume generated by 397 homes sold. Total residential sales were $37.5 million in 1991, an average of $94,449 per home.

The Janet Jones Co. was No. 1 in the zone with a 19.96 percent market share. That amounted to about $7 million in sales.

The seven other companies with more than 5 percent of the market were:

* McKay & Co. -- 15.58 percent or $5.5 million in sales.

* Rector Phillips Morse Inc. -- 13.52 percent or $4.7 million in sales.

* Re/Max Affiliates Realty -- 7.7 percent or $2.7 million in sales.

* Marcelline Giroir Limited -- 7.33 percent or $2.6 million in sales.

* Coldwell Banker McKinney & Co. -- 6.93 percent or $2.4 million in sales.

* Adkins McNeill Smith & Associates -- 5.9 percent or $2.1 million in sales.

* Prudential McKay Properties -- 5.04 percent or $1.7 million in sales.

The eight firms handled 81.96 percent of Z-5 sales.

The third-hottest zone was Z-3. Its boundaries are University Avenue on the west, I-630 on the south, Woodrow Street on the east and the Arkansas River on the north.

In this zone, 296 homes were sold at a total price of $28.5 million, an average of $96,225 per home.

Z-3 sales accounted for 7.01 percent of residential sales in the CARMLS reporting area and 8.74 percent of the dollar volume.

The area is home to neighborhoods such as Prospect Terrace, Hillcrest, Country Club Heights and Edgehill.

The Janet Jones Co. was No. 1 in the zone with a 25.24 percent market share and almost $6.9 million in sales.

The other six firms with more than 5 percent of the market were:

* Coldwell Banker McKinney & Co. -- 13.73 percent or $3.7 million in sales.

* Marcelline Giroir Limited -- 11.25 percent or $3 million in sales.

* Rector Phillips Morse Inc. -- 10.15 percent or $2.8 million in sales.

* McKay & Co. -- 7.76 percent or $2.1 million in sales.

* The Charlotte John Co. -- 5.59 percent or $1.5 million in sales.

* Adkins McNeill Smith & Associates -- 5.53 percent or $1.5 million in sales.

The seven firms accounted for 79.25 percent of Z-3 sales.
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Article Details
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Author:Waldon, George
Publication:Arkansas Business
Date:Apr 6, 1992
Words:1165
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