As a real estate broker in the Winnetka area, I have spoken to some sellers who are making the decision 
to stay in their home rather than sell for a loss. Some of these people are empty-nesters who are making an important lifestyle decision based on the market. They believe that the housing crisis will ease in a few years and that would be a better time to sell.
The problem is - we don't know what will be happening tomorrow, let alone a few years. The majority of real estate pundits predict that housing prices will not see a gain for five to ten years.
Traditionally, housing prices increased at nominal levels somewhat tied to inflation - until the 2000s. Suddenly, there was a spike that appeared like a super charged garden weed, overcrowding all sense of normality and causing a rush to buy before prices went even higher.
The Bubble. Then The Crash.
Now we are back at exactly where we were before the whole thing started - late 1990s to early 2000s prices - the market corrected itself. But for millions of homeowners and investors, the burst bubble has cost them dearly. Thus the sentiment that it's better to stay than to sell and lose.
If this is where you are, please consider this. Price your home correctly (with the help of a local, qualified agent) and then buy something else - for considerably less money that you would have several years ago. You will make up some, if not most, of this loss on your new purchase. Combined with excellent interest rates and little competition for properties, you should make a savvy deal which will offset some loss.
Moving is a highly personal decision with many factors that contribute to the ultimate decision. If you are stuck in place over worries that your loss is high, call a local real estate agent and discuss what other options you may have.
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