You are correct Holly: my crystal ball is in the shop!
Seriously, though, I think it comes down to your need/motivation to sell. It sounds like you don't have to be a seller, so I wouldn't be in this market.
One point to consider, however, is the "value" of your home. Just as you believe your home (and others in your neighborhood) are being under valued, the values from from 2004 to 2006 were often overvalued. I have clients who bought at the peak who will probably be waiting 2 to 4 years to get back to peak values.
Good Luck & Best Regards,