In most cases the decision to sell a home has to do with a life event and sometimes, especially in a market down turn, your home may not have enough equity to allow you to sell.
It might make sense to wait for the market to recover, but in some cases waiting may compound the problem.
Till about 2006 it may have made sense to wait, but from then on it didn't because of how much the market dropped. Nobody could predict what direction prices would go, but waiting may not always be a good idea.
In 2010/2011 after the homebuyer tax credit expired it may not have been a good idea to wait either.
I think what we can conclude here is if prices are rising waiting might be ok, but there's no telling what the market will bring next your unless you're monitoring market trends closing.
Market Trends to Watch
If you are trying to decide if waiting to sell makes sense then I would watch these three trends very closing.
Housing Inventory - Are inventory levels increasing, decreasing, leveling off? What direction does it look like they're going?
Home Prices - Are home prices still trending up, leveling off or heading down?
Months of Inventory - This indicator tells us if the market favors sellers, buyers or is in balance.
What Else Can You Do
Aside from having a home evaluation completed on your home you should also consider having a Seller's Net Sheet Completed so you can see what your proceeds will be when you sell your home.
Once that's established making the decision to sell now versus later will be that much easier.