As usual, FiveThirtyEight breaks it down in a compelling and concise manner:

That's in inflation-adjusted dollars. This kind of curve--driven almost exclusively by home debt--would only be okay if our incomes were rising at the same rate or if house prices were guaranteed to rise year over year.

Obviously, neither are true. How the market will absorb (or not absorb) these losses is at the heart of the challenge to America's economic recovery.