If you need to move then it's a win-win for you. You might not be able to get top dollar for the house you sell BUT you will be rewarded with better pricing on your replacement home.
The Reavis Group
Keller WIlliams WIlshire
Eco Broker and Realtor
It sounds to me as though you should discuss your plans with a Realtor that knows three things:
1. Your personal situation (when you want to move, why you want to move, and your possible alternatives)
2. Your local market trends
3. Your property
Unfortunately, I don't think any of the posters, although very well-intentioned, know these three key things. My recommendation is to speak with a few top Realtors in Lynnwood and ask them a lot of questions to figure out your possible options and the costs, pros, and cons, of each.
I do not work in your area however I would be happy to refer a top agent that does. You can contact me via my Trulia profile or call me 1-888-284-2056.
As my dad always said, measure twice, cut once.
Everyone's situation is different. You mention that you want to move into a different area.
When you say you can still afford the payments, you don't mention whether your house is still worth more than you owe. If you have enough equity to make a move you probably should. If you don't have enough equity to cover the loan and the sales expenses you are in what we call a "short pay" situation. If this is the case you won't be able to buy a replacement home for at least a year or two. Since renting has become pretty expensive it's hard to say what your best choice would be.
I would recommend finding an experience Realtor or financial advisor that you trust to help you make a decision.
Dilbeck Realtors, GMAC