Many sellers are still making substantial profits on selling their homes in this softening market. The secret is when you purchased your home. If you bought your home more than 5 years ago, you'll see a good return on your investment. If you bought your home in the last 3 years (boom times), there's little or no profit. The winners are those who have owned their current homes for 20 or more years - these home owners will make a significant profit on their homes.
You need to refocus - it's not what you could have sold the home for 18 months to 2 years ago, but it's what you paid 30 years ago and what you can sell for today. You weren't ready to move 2 years ago, so it doesn't really matter what you could have sold it for - you are still going to make a very nice profit. Your house has been a great investment: not only have you had a place to call home and not paid rent, you also double, tripled or quadrapled your investment. Where else could you have invested your money and seen that kind of profit?
So it's all a matter of perspective but, for many in New Jersey, homes as investments are still making their owners money.