The market seems to be improving, should I sell now?

Keep waiting.  The pace of home sales has increased (not shown), and the median price of single family homes has increased (shown above), but it is still not a great time to sell your house.  Depending on your price range, there are still 9 to 38 months of housing supply on the market --- and buyers are still finding plenty of sellers to negotiate heavily.

If you need to sell, or really want to in order to get into a different housing situation, then let's go ahead and get your house on the market.  But if you can comfortably wait for another year or two, I believe you will have better conditions in which to sell your home.