Julia Lashay Israel, Operating Principal, Keller Williams Integrity Lakes

In an interview with Invest:, Julia Lashay Israel, operating principal at Keller Williams Integrity Lakes, explained why Keller Williams agents continue to achieve higher sales prices amid market challenges, noted that the Twin Cities market shows preference for mixed-use developments, and cited culture as a differentiator for Keller Williams.

What have been some of the main highlights and key milestones for Keller Williams in the last 12 months?

In the Twin Cities market, our agents have been highly productive. I do not want to frame it as outproducing other agents, but rather, our agents have been successful in their work. Real estate is an entrepreneurial business, and Keller Williams agents have found success within our system, allowing them to be more productive than others in the market. For real estate agents, success is often measured by production and sales volume. The average sales price in the Twin Cities area is approximately $380,000, whereas agents at the Minneapolis Keller Williams office have an average sales price of approximately $450,000. This is a significant achievement, as it demonstrates the strong performance of our agents.
Despite high interest rates, our agents have been able to sustain their level of production. Real estate remains a viable and successful business. There continues to be tight inventory in the market, though it has loosened somewhat over the past few years. However, inventory remains low, particularly for affordable housing options. Even with these challenges, our agents have been able to assist buyers in finding homes and support sellers in listing their properties. 

What is your overview of the residential real estate market in the Twin Cities area, and what are some notable trends? 

One of the key trends is the increase in home prices. The market in the Twin Cities remains strong compared to other markets. In addition to working in the Twin Cities, I also work at our headquarters in Austin, Texas, which provides me with an overarching view of different markets. The Twin Cities real estate market is sustainable and remains a solid environment for purchasing and investing. There has been a growing focus on sustainability, with an emphasis on eco-friendly developments. Additionally, there has been a push toward reutilizing and redeveloping existing spaces, which has become a significant trend. Mixed-use developments have also increased, integrating residential, commercial, and retail spaces. These developments have been performing well, depending on their location. On a national level, there has been a significant discussion about office vacancies. While Minneapolis has experienced a slight increase in office vacancy rates, it is nowhere near the levels seen in other cities. The perception that Minneapolis has widespread commercial vacancies is not accurate. In fact, many spaces remain occupied, and our own team has faced difficulty finding new commercial office space due to high demand. Unlike some cities where there is an oversupply of vacant commercial properties, Minneapolis has maintained a more balanced commercial real estate landscape.

What are the main opportunities for growth in the residential real estate sector in Minneapolis-St. Paul?

There is significant interest in mixed-use developments. Many developers are focused on repurposing underutilized properties and transforming them into modern spaces. The shift toward hybrid work models has influenced how space is used, with an increasing demand for collaborative work environments. For investors, there are opportunities in both single-family homes and apartment buildings. Minneapolis has long been known for its creative investment strategies, and this continues to be the case. While interest rates remain high, some long-term investors may decide to exit the market, creating opportunities for new investors to acquire apartment buildings and residential properties. Additionally, the Twin Cities area offers a variety of financing options and creative investment programs. There are several initiatives designed for emerging investors, making it possible for them to enter the market and participate in real estate investment opportunities.

Would you describe the housing market in the Twin Cities as a buyer’s or a seller’s market, and who benefits the most under the current market conditions?

I would describe the market as balanced. When interest rates were low, it was a strong seller’s market, as homes sold at high prices. Now that interest rates are higher, prices are more reasonable and sustainable. This creates a good opportunity for both buyers and sellers.

The Twin Cities market remains resilient despite national economic fluctuations. Buyers can still take advantage of various financing programs and incentives that help mitigate affordability challenges. At the same time, sellers can still sell their homes at favorable prices. While the number of days on the market has increased slightly, homes are still selling at a steady pace.

At the end of December 2024, the median number of days on the market was 22, which is still relatively low. Sellers continue to find buyers in a reasonable time frame, and the supply of homes, while healthier, is still below the ideal threshold. Most economists would consider a three-month supply to be a healthy real estate market, and currently, the Twin Cities market has a 2.3-month supply. This is higher than in previous years but still indicates a relatively tight inventory.

What are the primary challenges that the residential real estate industry is facing, and how does Keller Williams address or navigate these challenges?

The primary challenge would be interest rates. For many people who have been selling real estate or even those who have not, depending on their age, this is probably the highest they’ve ever seen in their careers or in their lifetime. However, one of the ways we help our agents remain successful despite this is by developing creative financing and pricing strategies. In fact, we have a whole playbook on what we call “mortgage hacks” to help our agents assist their clients. We always say, “Marry the house, date the rate.” For example, the house I am in right now has a high interest rate, but I love this house, and it is the best house I have ever had. So, I bought it anyway because the house will not change, but interest rates will. Even though interest rates remain higher than people would like, Keller Williams provides playbooks on mortgage hacks and strategies to have conversations with clients that encourage them to buy or sell despite the rates. We have a number of playbooks that we teach our agents to use to navigate these challenges.

In what ways does Keller Williams differentiate itself from other real estate companies operating in the Twin Cities?

I would say it’s the culture of Keller Williams. People can sell real estate anywhere, but they choose Keller Williams because of our culture. We have a belief system called the “WI4C2TES,” which stands for our core values and how we conduct business. For example, the “W” stands for “Win-Win or No Deal,” emphasizing integrity and putting the customer first. This belief system creates a culture of productivity, coaching, and excellence. People want to be affiliated with a brand that stands for something, and that’s what Keller Williams offers. The culture sets us apart because it resonates with who our agents are and what they believe in.

Regarding workforce development, what training or education programs is Keller Williams implementing to train the best real estate agents and operators in the sector?

For many years, Keller Williams has been voted the No. 1 training organization, which is remarkable because we’re a real estate company. We focus heavily on training and coaching. We offer the best real estate training available, catering to agents at all stages of their careers. For new agents, we have a program called “Ignite.” For more experienced agents, we provide training on expanding into different markets and regions. For example, my team is based in Minneapolis but has also expanded into the Dallas market. We offer coaching programs for agents at every level, from those handling one to five transactions to our top 20% of agents. We also provide MAPS coaching, which is a Keller Williams program designed to help agents achieve their goals. This focus on training and coaching has helped our agents succeed. Recently, the Minneapolis Association of Realtors recognized us as a finalist for the most distinguished brokerage in the Twin Cities area, a testament to our agents’ productivity and the effectiveness of our programs.