My immediate reaction to your expenses was "Holy Jesus."
Your discretionary spending is insane. I think you know this.
Just as a thought experiment, let's say that you cut food spending (all categories: dining out, "food", lunches out & snacks) to $300/mo, personal care/cleaning supplies/haircuts/gym to $200/mo, and clothing/dry cleaning to $100/mo. That's an additional $1207/mo in free cash flow that can go towards debt repayment. If you put that $1207/mo along with the $2,000/mo you are putting into savings towards your mortgage on your new house, you can pay off that mortgage in 5 or 6 years.
I've written some comments below on certain categories and how you can cut them. The big picture here is that you were contemplating selling your dream house so that you can continue to spend $1,000/mo on food and $300/mo on cleaning supplies.
Let's just look at the "Food" categories. You are spending 600+200+150+50=$1000/mo for 2 people. There has to be food waste going on here (or excessive food stockpiling?). How much do you cook at home? You can easily live on a quarter of this budget.
Clothing: You are spending $177/mo on clothes. That's maybe acceptable in your first year of work, when you building a professional wardrobe, but in your early 30s, you both should have an ample supply of professional looking clothes. Experiment with a minimalist wardrobe (check the threads around here and check out Project 333)
Personal care: You are spending $300/mo on cleaning supplies/pers care, $130/mo on personal care/haircuts, and $200/mo on the gym, for a total of $630/mo. Try putting a moratorium on buying cleaning supplies. Stretch out the time between haircuts, and try going to a beauty school for cheaper haircuts. I go to the Aveda Institute in San Francisco every 10-12 weeks for a cut that's $20+ tip. If you really want to be badass, learn to cut each other's hair. Are you really getting your money's worth from a $200/mo gym membership? Can you find more affordable alternatives (say, running outside, or lifting weights at home, or yoga dvds, or even just a cheaper gym)?