As Bugsy has said, it's not a good a time to sell and your home sounds as if its pros far outweigh its cons.
Give your house a makeover. Have a good clear out, move furniture around, redecorate, buy new curtains/blinds/bedlinen as and when, and turn your home into a sanctuary that is exclusively yours.
Pay attention to its outer appearance. Paint the front door a different colour and if can't be painted because it's a double glazed pvc number, place a tub of flowers, hanging basket, or windowsill planters, outside to give it a 'new look' which will make you do a double take for a while when you return home each day.
If you're into new age pursuits, open all of the windows and clear old energy by smudging/clapping/ringing a small handbell (google for further info).
As for your dm living nearby, even if she lived next door it would be possible to keep your distance from her as you're only obliged to have as much contact with any friends/family members as you want.
Any unwelcome memories you may currently be harbouring will fade away as you get on with your new life. Good luck!