I think you are too late to time the market, you had to sell itleast a year ago. Now you will just chase prices downward, and when you add that to the 6% it costs to sell including closing costs, I do not think you will be much ahead unless the biggest depression of all time hits. It could, but I am betting against it. Especially if you like your place and where you live.
Do not read those scare tactic articles from newspapers, most of those people have never made a dime, so why would you listen to their advice? I have made a nice living for awhile fading those people, as they are wrong a high percentage of the time.
Prices are coming down, there is no denying that, but for your scenario at this point you need a crash for it to pay off, larger than the early 90’s one. I think we are already down 10 to 15% at this point, you will probably take a 5% hit now from where you think you can sell, to where you would actually sell. Add that to the 6% cost of doing so, and now you are more or less the equivalent of anywhere from 21 to 26% off the top. We may go further, but remember, prices are rigged upwards not downwards, so you are really betting against a very strong long term upward trend, and hoping for a greater than 25% pullback against it. Odds do not favor that happening.
Many in here think it is different this time, and they may be right, but I am not one of them.