What does your loan look like? You say its 30 years. Have you refied to a lower rate when interest rates dropped earlier in this decade? How much would you net if you sell? How much did you pay for the property?
Without knowing too many details I’d suggest (and I’m no expert – I just play one on the internet) that you sell. The property is a negative cash flow, you think its too small to move back into, and prices are not going up anymore.
With a 30 year loan you are not paying down a significant part of the principal and the equity in your home is likely to drop over the next three years (maybe dramtically – who knows). You could sell and stick your equity in a CD (at the least) and have it grow but keeping the home will only have the equity shrink with price declines or even inflation if housing prices simply flatten out.
But beware, the only houses selling now are ones that are fixed up. My house is completely remodeled and it recently went into escrow with several offers. Other less expensive houses (not upgraded) in the same neighborhood have languished on the market since last year.
