Cleaning out the old inbox, and getting these questions answered...
Lane, should we sell into this market?
Talk about a tough question... Here is the short answer.
No.
That said, if you have to sell, you have to sell. If you have to sell, remember that this isn't 2006. Don't expect 2006 prices. Yours may be higher, but probably not. Don't expect to have a party a couple of days after an open house to open all of the offers.
But, if you are moving up in the market, have good credit, and a good level of equity, this could be a good time for you. Take the "loss" on selling your home, and buy into some future equity on a more expensive home. If you plan on staying put for a while... go ahead. If you can find the right deal, and outlast a downturn (we are in one right now, but I am betting we start back up quite soon) you'll be fine in the mid and long term. If you are not staying put, or just can't even think you might be in the house for 7 or ten years... this might not be your time.
But, it might come back sooner than that. We can't know where the market is going and when it will get there. if you don't have equity, or don't need to access the equity, and can find a renter, that might not be a bad solution.
Bottom line: It depends on you and your situation.
Lane, You laid out the options very well. But even trading up it might make sense to hold on to the relinquished property for a couple years (just not past the time to take the tax-free cash).
Bill Roberts
Larry - At least not from our "professional association."
Bill - Absolutely, unless one has a low tolerance for risk (keeping a renter in the property), or needs the equity from the property to move up. Every situation is different.