It's called buying into a Down Market!
It's a matter of trading what you have for what you would prefer to have. Yes, selling your current home will look like a loss on paper but whatever you choose to buy, will have fallen in value as much or more, so after the transaction you could come out a little ahead and have the house you want in the location you prefer.
And with interest rates so low, it really makes sense to sell and buy now if you have the desire to make a change. Important to sell before you buy though so you don't get caught with two homes at once.
Having cash and or contingency free financing in hand, gives you the best bargaining position for your new purchase.
Would you like a bigger or smaller house, or maybe a house in a warm sunny place like Arizona? Now really is a great time to make the move.
Sun Lakes, AZ