As for when the market will recover, nobody knows. We do have a number of business activities that should bring substantial activity to the home buying market. Some analysis says we are at the bottom of the slump, others say it will take two years. The fact is if we are patient the market will recover, just as it has done many times in the past.
You didn't say if you wanted to sell right away, or were just thinking ahead. I think you should consult both your Realtor and also with a Home Stager before you make these decisions. Your Realtor can tell you how much money you can expect to get for your home. An Accredited Staging Professional (ASP) can help you determine which upgrades will give you the best return on investment should you decide to continue with renovations. Even if you decide against renovations, the consultation will provide you with specific instructions on what to do so that your home shows the absolute best when selling, even without the upgrades. An ASP can also provide you with economical solutions and/or sources for any updates you might choose.
I'd be happy to put you in touch with ASP's in your area or feel free to search http://www.stagedhomes.com.
Staged by Design