Houses are still selling, and although prices are soft, most are holding steady with some decline, and some are even gaining in many markets, albeit very slowly. This means your home is probably still worth more than you paid, if you've been in it a sufficient amount of time.
And be careful not to fall into the trap so many sellers fall into: they use the price their homes command in the current market as the sole driving force in their decision whether to sell or not. They forget to look at the big picture. Yes, you may not have as much value in your home as a few years ago, but neither do all other home sellers. That is, homes in your move up target range-or even if you're looking to downsize-are attractively priced and great values are out there.
But to cash in on these opportunities and real any equity from your home sale, you do have to venture out and sell in today's changing and uncertain market. And all those other "For Sale" signs in your neighborhood mean you'll be competing with your neighbors for the attention and interest of a smaller group of skittish buyers who have less money to spend on monthly mortgage payments.