Only you can answer that. If you are wanting to buy a larger more expensive home it could very well be a great time to sell and trade up. Even if you lose something on your current home you should more than make it up on a more expensive home.
If you are buying now and wondering if you should wait to see if home prices drop further... guess what. Even if home prices drop further in some markets if interest rates go up by half a point that would negate a $40,000 reduction in the purchase price of a home.
It's hard to time the market so it is best to buy or sell when you need to do so... based on your needs, objectives and goals. Once you understand your objectives the picture should be a little more clearer to you.
Best of luck to you.
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group