Everyone here knows about the “drought” drought – no water.  But California is experiencing another drought – a drought of first time home buyers.  Yeah, yeah all the California economic news is sunshine and rainbows – we’re back, Baby!  That news is also something else -it starts with “B” and ends with “T” and has “ullshi” in the middle.  The California real estate market is still in the toilet – except in the San Francisco Bay Area and Los Angeles where all the news reporters live.

Dr. Housing Bubble explains it all here, but in a nutshell the percentage of home sales going to first time buyers is the lowest it’s been since 2006.  Even with interst rates at near historic lows, young California wage earners would be hard pressed to come up with the $80,000 or so down payment required to purchase the median priced home.  What about all those bargains to be has from the 1,000,000 California foreclosures?  Snapped up by investors who are now renting those houses to…young California wage earners.  You see, not everyone here is a Facebook or Google billionaire.