When you sell your home should be based more on want and need then market conditions. We've sold 3 of our own properties in a down market (one our residence, one former residence/rental at the time, and the third just a rental). Why, because we wanted to build a home that we could be in more long term and start a family.
Even though, it was not the ideal time to sell, we are much happier with our current situation. I would not have been happy sitting in our condo waiting for several years for the values to come back up.
All this to say that it's a personal preference decision, not a market decision.