DaveD,
If you are moving up in the market you are looking at the process in the wrong light. The upper end has, at least here, been hit much harder than the lower end of the market. Unless your market has fallen more then the upper end, then you should come out ahead, especially since your selling and buying costs should have fallen. You may be able to sell your home for 10% less then you paid, but buy for 25% less than when you purchased. Overall, a 15% gain. The lower end is actually getting hit a little harder right now because of the first time homebuyer money available. True, more lower end homes are in foreclosure, but there are very few move up buyers because so many people are upside down. I have seen some fantastic deals on upper end properties. Take a look, compare where you will be today compared to where you will be when the market changes and you probably will see that it is worth doing now.