According to Zillow, U.S. homes will lose a total of $1.7 trillion in value in 2010. The value lost this year will be 63% more than in 2009, and will take the total value lost since June 2006 to more than $9 trillion.

For the past couple of months, Steve and I have been weighing the pros and cons of moving to another town. We have several concerns about our town, but our largest concern is the local school system. Ian, who is shipped to another school district because of his special needs, is doing just fine. Jonah isn't challenged enough. (He's midway through 6th grade, and he hasn't written anything longer than a greeting card.) We might stay and supplement his education with outside services. However, it might be easier to move. It's certainly not worth my effort to change the system on my own.

So, I've been talking to real estate agents and checking out homes in other towns. If we sell our home right now, we'll lose some money. We had to invest a lot of money to keep the house standing up, and we won't get all of it back. On the other hand, we can buy a home that would have been unthinkably expensive four years ago. We might even come out ahead. I'm going through online listings, and I'm finding homes that have already been emptied out of possessions. Owners have reduced their asking prices three or four times.

I know other parts of the country went through this trauma last year, but it's really just hitting our corner of the country right now.

For new buyers, this is a great development. Housing prices were completely insane a few years ago, and a few lucky friends were able to buy very nice homes this year. For others, the housing market is devastating. The online listings frequently talk about bank ownership and short sales.

Others aren't investing in their homes anymore. Why bother putting a new bathroom on your house, if you can't recoup some of the costs when you move? I think people aren't even cleaning up their yards as much anymore, because they've grown to hate their homes. They are no longer seen as an investment; instead, they are a burden. Remember: a home without equity is just a lot of debt.

Rumor has it that housing prices are going to go down even further in the spring, especially if the economy takes another downturn. It's strange to think that just a few years ago, when we were looking for a home, there were lines of people waiting to buy little Cape Cods by the side of the railroad tracks. Those homes had mulitple bids and went $100,000 over asking price. Irrational exuberance and all that.