Rule of Thumb: Plan on 1 month on market for every $100K of price. Subtract or add a month for every 10% you are below or above the true market value for your home. Thus, if your home's true market value was $800,000 and you listed at $880,000, plan on about 9 months to sell your home. Now, in reality, it may take less, but this is just a planning figure to give you something with which to tentatively plan your life.
The decision to sell or keep your home is a tough one, and involves tax, legal, social and other financial considerations that only you can weigh. But if you are trying to make a decision based solely on market timing, I think that this market will bottom sometime between 2009 and 2010. Until then, we are likely to see a gradual decline in the prices of residential resale real estate. If I had to guess, I'd predict about another 15% decline for some real estate markets, including Albuquerque.
Hope these thoughts help, but again, I'm a broker, not an economist, banker, lawyer, tax adviser or anything else, so seek professional guidance by all means.
High end sales in the area have slowed dramatically for two reasons: the high cost of non-conforming loans (the Jumbos that everyone hears about) and the drying up of the pool of potential buyers for those homes. (The areas that normally serve as our 'source' are precisely those hit hardest by the subprime debacle and the dramatic increase in foreclosures.)
Both situations are temporary in the sense that they won't last forever. ALL markets are cyclical. (The investment part of your home is no different than the stock market.) From the tenor of your comment, it sounds like you don't HAVE to sell right now. So, sit tight and don't read local real estate news for about one year :).
In the last 20 years Albuquerque has seen steady growth, only seeing a loss once (2% in 2001 I believe). In my opinion, even the national market (excepting those areas that were/are WAY over inflated) will not go down. Real Estate has historically always been a great investment, and I sincerely believe it will stay that way.
However, if you feel that you could sell now, and walk away with a healthy profit you may want to way in the risk-vs-potential gain. If you are going to sell in the sort-term (less than 2 or 3 years) How much gain would be worth the risk? In my opinion, in our market 5 - 10% growth in the short term is probably the best you could hope for. I'm sure you would invest your profits, likely in an investment more stable than real estate. How much interest would be gained on that investment? If you were to subtract that rate from my guesstimate, are you looking at enough profit to "chance it"?
If you would like to have coffee and let me play devils advocate for both sides of your decision, it would be my pleasure!