Of course we are in a contraction right now and you will get several "falling sky" responses. However, recessions are really just business as usual, sort of like an economic root canal. They are like forest fires - they seem cataclysmic, but they are just a natural and normal part of human economic life. They serve a purpose and are ultimately a good thing. However they do cause disruption and force people to learn new skills and discard old ones that are no longer in demand. And they cause home values to fall.
As long as you are happy in your townhouse, I would forget about the market entirely. Just concentrate on staying employed! The market will come back and your townhouse will increase in value again. Maybe 3 years, maybe 5 years, maybe 10 years. Nobody knows when and nobody can predict.