If the average homeowner has trouble with the RE market today what excuse will the State (CA) Government use? The State receives tax revenue on transactions (sales) and look at what has happened in CA with sales down 26% in June. I read an article that overall employment in CA was up recently. There were job loses in construction and finance (Mortgage, RE. etc) but that was “offset” with jobs created in Travel (lower paying jobs with less tax revenue). It looks to me at the end of the year the state is going to be deeper in the red and won’t know why.