Look through your appraisal report carefully and see if the information regarding your home is accurate. This will help you to decide if you really think you received a valid opinion of market value in 2006. If there is minimal deferred maintenance and recent remodeling, the physical depreciation should be minimal, but the external depreciation caused by current economic market condition have affected all the residential properties in this market.
An appraisal is an opinion, but most agents are over-listing properties, which results in long exposure times in the market. Get an expert's opinion of what your property is really worth from a qualified professional appraiser and then use a real estate agent to help you sell your property to a qualified buyer at a reasonable sale price.
One thing to remember is that the market differs GREATLY from area to area. In some areas prices are hanging tough. So I believe the best thing to do is contact an agent in your area and ask them about the market, then have them do a CMA (competitive market analysis). That will give you an approximate idea of what your house would sell for.