I've posted a number of articles about this question before, never has it been more pertinent than now.
Whether your home is a condo in the city or a ranch house on acreage; you may be better off renting it out until the market comes back.
Forbes.com recently posted a calculator to help you figure out the benefits of renting vs selling your home. There are some things the calculator leaves out, closing costs, tax benefits of owning a rental property and some other important financial figures. The calculator offers a CAP Rate calculation weighing the benefits of renting against other investments you could make with the money from the sale.
The tax benefits of owning rental property alone may justify not selling in this down market. Not to mention the likelihood that you will have to settle for much less than you wanted.
For Rent, For sale, lease option DO SOMETHIN!
I liked this sign I saw in a local Kansas City Neighborhood.
"For Rent, Possible owner finance, lease / option /purchase
These are some pretty desperate times for many, perhaps it is time to consider renting your home.