Foreclosures have traditionally accounted for only a small fraction of the real estate transactions in the Phoenix area market, but in January, as in past months, foreclosures were the whole story. Almost half of the existing-home transactions -- 45 percent -- were foreclosures. And, if you include the resale of foreclosed-on properties, a total of 67 percent can be attributed to foreclosures. Jay Butler, associate professor of real estate, compiles the W. Carey School's monthly Realty Studies report. He talked with us about how economic conditions, including the revenue crisis facing the cities and the state, affect our neighborhoods and our real estate values. (6:40)

Click here to listen