The report says falling home prices as a result of the collapse of the housing market caused most of the drop in wealth.

Lawrence Yun is chief economist of the National Association of Realtors. He says falling home prices make families less willing to spend money.

LAWRENCE YUN: "A decline in home value has a major impact on the economy because for most homeowners the largest wealth holding is in their housing. And, therefore, if the home values decline, it makes the homeowners much more conservative about their spending outlook."

Mr. Yun says there are signs that the housing market is improving.

And that's IN THE NEWS in VOA Special English. I'm Steve Ember.