Well it's not necessarily the best time to sell. However any time that you're going to both buy and sell, your advantage/disadvantage is negated no matter what the market is like. If it's a bad time to sell, it's a great time to buy and vice versa. Just make sure you get a good price on the purchase if you're taking a loss on the sale.
I also think your timing on going into a child friendly area is the right decision. Population charts show 3 distinct groups, the baby boomers ('45-'64), the gen Xers('65-'78), and the echo boom( '79-'90's). Boomers are retiring and selling their extra space homes, gen X doesn't have the numebrs to keep up demand, and the echo boom is still in condo phase. This should translate into higher supply of kid friendly homes, and lower demand for them, which should equate to a lower price. And by the time you're ready to sell, the echo boom will be getting into their family phase respuring demand.