The gas leak in Aliso Canyon has been sealed but the impact on the nearby real estate market could linger for a while. Realtors say they have not seen a noticeable change in sales volume or prices for Porter Ranch properties close to Southern California Gas Co.’s hillside storage facility where the leak originated, especially since real estate activity in all markets historically drops in winter months. If anyone benefitted from the leak, it was homeowners outside the area who rented to relocating residents as costs jumped for short-term leases. Keith Myers, owner of Re/Max Olson & Associates in Northridge, said he hasn’t seen any fire sales of homes near the leak but has noticed fewer listings. “Those people thinking about selling – unless they really needed to – we’ve seen people wait and see, so the number of new homes coming to the market has dropped off,” he said. Whether or not the real estate market in that section of the Valley was impacted by the smelly and irritating gas leak that lasted for four months, politicians are moving to prevent another well accident. A California Assembly committee and the state Senate unanimously approved SB 380 by Sen. Fran Pavley, D-Agoura Hills, that would temporarily ban some uses of the facility until further state review of its wells. It would also require California to consider the impact of reducing use of the state’s largest gas storage field. Market ‘headwinds’ SoCal Gas’ well leak in the Santa Susana Mountains, discovered Oct. 23, spewed methane and benzene into the air until it was sealed Feb. 17. Reactions ran the gamut, Myers said. “I talked to one buyer who said he doesn’t care, while I talked to others who said they won’t buy there ever because it could happen again in the future,” he said. Patti Petralia, Re/Max Sales Manager, said despite some news stories and rumors of great rental deals for homes and condos while the leak continued, she hasn’t seen any significant declines. “Two of the most recent leases were at $2,400 and $2,800 per month, which are in line with rental values before the gas leak,” Petralia said. “The rentals are very desirable.” The Re/Max office sells at least 60 percent of the homes in the areas closest to the utility’s storage facility, and home and townhome sales have also not been impacted so far, she said. Two recent deals closed at $550,000 and $595,000 for homes of 1,746 square feet and 1,845 square feet, respectively, in line with market value. “I think the majority of people who live up in Porter Ranch realize that this was a temporary situation, and I think from my conversations with people that they were confident this would be resolved and they would go back to living as normal,” Petralia said. But she also said any significant change won’t be obvious until midyear, and she anticipates sales volumes and prices will remain stagnant. Horsham, Pa.-based luxury home builder Toll Bros. is building and selling homes and lots at four developments in Porter Ranch. The company said in an email to the Business Journal that all activity continued during the leak. “While there were obviously headwinds over the past months, we saw customer traffic and sales, which is a testament to the resiliency of this community and market,” said Frank Su, division vice president. Opportunities Homeowners who rented out their homes to relocated Porter Ranch residents saw healthy bump-ups in rent revenue. Olson Re/Max Realtor Collin Johnson carved a niche business as a go-to person for Porter Ranch residents wanting to move temporarily. He negotiated about 25 leases for furnished homes in neighborhoods such as Granada Hills, Sherman Oaks, Tarzana and Encino that were comparable to the affluent Porter Ranch properties – 2,000 to 3,300 square feet with four bedrooms. Average monthly rents paid by the utility ranged between $5,500 and $7,500, Johnson said. The $7,500 was the maximum allowed on So Cal Gas’ rental reimbursement form. Most of the rents were above market. “You need to be above market value in order to have a short-term rental take place – to account for the inconvenience to the property owner,” Johnson said. Leases for homes are typically a year or longer, he noted. The homes often had been on the market for a long time, so owners were willing to rent, Johnson said. He found clients at town meetings about the gas leak. “My thing was, I wanted to build up relationships with clients; I did everything on a fixed-rate commission,” Johnson said. Myers said a lack of demand in Porter Ranch’s rental market may have forced some rents down for those closest to the gas leak. But with the leak sealed, rentals should return to normal, he said. “The market works and Porter Ranch remains a very popular area because of the schools, neighborhoods, ease of access and lifestyle,” Myers said.
