Depends what you need to do with your house. As others have noted, you have a decently sized home. Do you hate the community? Do your neighbors suck? Will your kids be sad to leave friends? Those factor in too. You have a few options...
Do nothing - One of your current choices
Purchase - One of your current choices (some newer homes are super shoddy, quite a few are pretty good, you'd have to do a lot of research). Can build brand new, or just purchase brand new
Renovations (Don't think it's been discussed yet).
Covert to a lifetime renter (Not really something I think fits your goal)
Personally, I would avoid moving if you like the area. There must be some way you could potentially adjust your situation to meet your needs. Storage lockers, throwing away or selling that dusty junk in the basement, telling the kids they can share a room till they move out etc.
You're in your 30s. A huge house sucks in a decade or longer when the kids leave the home for post secondary. But perhaps you will just downsize when that time comes? I mean, if you have accessibility issues with the place that won't be fixed via reno and clean up (neighborhood, lack of parking etc.), that's a different thing entirely because the upgrade is based on an actual need.
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