One of the problems with trying to sell now is that you are very likely to have to price your home below the current ‘market’ price to get it to move. That’s not an easy thing for most people to do — especially when you will be selling voluntarily. It’s much easier psychologically to sell on the way up as you can price your home at the current market and then sell at an above market price.
You’re in a tough situation. The housing market could still drop 40% from here. However, you may have to price your house 10% below market to get it to sell. I’m not sure what I would do in your spot. Probably stay put.
