6/22/16 – Planned Diablo Canyon closure causing real estate jitters

6/22/16 – Planned Diablo Canyon closure causing real estate jitters

Publish Date: 6/22/2016

By: KSBY Staff

Source: KSBY

Video Link: http://www.ksby.com/story/32287867/planned-diablo-canyon-closure-causing-real-estate-jitters

In the wake of PG&E’s decision to close down Diablo Canyon Power Plant, local realtors fielded questions about what will happen to the housing market.

Some area homeowners were concerned the loss of high-paying jobs may mean the housing market could take a hit.

One real estate company told KSBY a Central Coast couple was in the midst of buying a home in Nipomo when they had second thoughts. This came after they read headlines like, “Diablo Canyon to shut down in 2025.”

“We just recently put a transaction together on Saturday and then on Tuesday morning they said they wanted to cancel, because they are a young couple and work at PG&E,” said Dick Keenan, Broker Associate, Keller Williams Realty.

The thought of no job security made the couple want to back out of the sale.

“In the afternoon, after their meetings and what they were told, they decided they wanted to keep moving forward because we still have 10 years of working at Diablo Canyon,” explained Keenan.

Many employees were offered monetary incentives to stay until the closure of the plant.

“I think the important advice that we are giving our clients is, 10 years from now, the real estate market is going to be a lot different than what it is today,” explained Erny Pinckert, who is the owner of Central Coast Realty Group.

“The nice part is that we have a 10-year window. If they were to close the plant today, there would be some serious economic impact on the area,” said Keenan.

Some people were also thinking this might be a good time to put their home on the market, in case home values fall as the closure nears. Real estate experts said Wednesday that it was way too early to be thinking that way.

Another realtor said vacation rentals may also take a hit. Many contract employees at Diablo work for three months at a time and seek out vacation rentals.

More than 1,500 people work at Diablo Canyon Power Plant.

 

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