cutting your square feet in half for 181k to 151k in savings doesn’t seem worth it to me, especially when you factor the transaction costs. Then there’s the property tax recast, since I do not know what you paid for your 800k valued house but if it was less than 650k you’ll be paying more in taxes. You might not see any savings. Kids in college come home for breaks and sometimes after college they come back for a spell. Plus once they start families those rooms come in handy when they visit. If you’ve got one in college and one in high school, it’s premature to downsize IMHO, life still may have many variables in store for you.
If you want to go “all in” sell the big house, live in the condo and see what happens. I’m not optimistic that nominal values will fall, I fear inflation will eat that up in the next downturn.
