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Experts watching energy's effect on housing market

Southern California's housing market remains basically strong, but experts are keeping a close eye on the cost of energy and its effects on the economy.

That's the thrust of Metrostudy's second quarter 2006 report on the housing industry, with the real-estate think tank saying the region is definitely feeling the stress of $3 and up for gasoline.

Energy costs are becoming more and more important, said Steve Johnson, director of Metrostudy's Southern California division, because affordability concerns are driving people farther and farther from their jobs to find homes.

What that does, Johnson said, is offset the benefits of a lower mortgage with higher costs for gasoline.

"We are creating a ...

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