Unless you have to move, don't. This is all a cycle. I think what everyone has learned is that your house should be a place of enjoyment that you want to live in and not just a source of cash. Eventually, prices will go up.
When I first moved back to MA I lived in a smaller house, in a town I didn't want to live in. There was nothing inherently wrong with the place, but I spent 6 years just planning to leave. We eventually sold it for about 10K more than we bought it for, leaving very little equity after the real estate commission. Thankfully, we used stock options that we had just received to buy our new house. This was right at the time we were coming out of the last recession, in 1996. Prices were just starting to heat up. When we sold that house 3 years ago, we made a huge profit, which enabled us to move to where we are now.
My house has lost some value, but I am not planning on moving for at least 10 years... I am enjoying it.