Certainty is seductive, and so are tax savings for owning homes!
November 30, 2025
NYC Post-Election Market Update and Your 2025 Year-End Homeowner Tax Checklist 🗓️
Dear friends,
I’m writing you from the front porch of my in-law’s home in the Hudson Valley, with pants that are clutching a bit too tightly around my waist from the unapologetic consumption of copious pies.
The night has fallen (at 5pm, so sad), so the lake outside is no longer visible. The house is quiet, as most of the other children and grandchildren (and three dogs) have departed.
My husband and I are returning to the city early Sunday morning, as I have 4 showings and an Open House at my new listing.
Thanksgiving celebration with family by a cozy fire in Waccabuc (Westchester)
How’s NYC Real Estate Post-Election?
The real estate market in New York City is busier than I would have imagined this holiday season. In Manhattan, buyers are not only out shopping, but they have also signed over 950 contracts in the month leading up to Thanksgiving! Sellers have put almost 350 new listings on the market in the single week before Thanksgiving – a 40% increase from the same week the prior year – with Lenox Hill seeing 36 new listings last week (for my buyers who are excited about moving uptown, this is wonderful news).
My interpretation of this increased activity is that post-NYC mayoral election, people have an increased sense of certainty, whether they liked the outcome or not. With increased certainty, people feel unstuck and they start making moves. I can relate – uncertainty paralyzes decision-making, and certainty brings action.
There is another certainty in life as well: taxes.
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Are you dreaming of your next home? Book a free 20-minute consultation with me with no strings attached.
Is the math mathing (for homebuying)?
With one month left in 2025, the golden window of tax planning is here for my homeowners and would-be homeowners!!
Mortgage rates have come down from the 8s high to hover around the low 6s, and I find myself chatting with a lot of NYC renters who are considering buying.
One general sentiment I hear: The math just doesn’t math!
To own the same one-bedroom someone is currently renting for $6,000, their total monthly cost between mortgage payments, property taxes and common charges could be $8,000! (Scenario: 20% downpayment on a $1.2M condo with $2,000 carrying cost.)
However, just comparing the total monthly payment doesn’t show the full picture!
Did you know - The tax code incentivizes homeownership, for both end-users (who plan to live in the home) and investors (who plan to rent it out)!
Read my checklist below and see how many of these tax benefits of homeownership you might qualify for, then schedule a call with your tax advisor! Now is the perfect time to schedule a call with your tax pro because they are not up to their eyeballs buried in tax files with deadlines fast approaching.
Remember – I’m not a tax professional, but I am here to help you ask the right questions!
For those who might be considering itemizing:
1. The NEW $40,000 SALT Deduction Cap (And Why It Matters) ✨
For years, the SALT (property taxes and state and local income taxes) deduction cap sat stubbornly at $10,000. Anyone living in a high-tax state like New York felt that limit immediately. Recently, under the new legislation, that cap is temporarily increasing to $40,000 per return between 2025 and 2029. This is a welcome relief for New Yorkers, because let’s be honest, how is anyone’s property tax + income tax going to be less than $10,000 in New York City?...
For many New York-area homeowners, this is a real shift. It means a bigger deduction, a bit more breathing room, and a return to feeling like homeownership isn’t being penalized quite so harshly on the federal level.
There are income phase-outs and nuances, so again, talk to your tax pro. But for everyday homeowners, this is genuinely good news!
2. Mortgage Interest Deduction Limits:
Not only is your property tax potentially tax deductible, so is your mortgage interest! If you took out a loan after 12/15/2017 (let’s be honest, most of you probably re-financed in 2020-2021 when mortgage rates were in the 2s!), interest on a mortgage up to $750,000 is deductible. For those of you who got the loan before 12/15/2017, congratulations – your interest on a mortgage up to $1,000,000 is tax deductible.
Remember – a 30-year amortized mortgage (most residential mortgages) is front-loaded in interest payments, which means in the early years of your homeownership, you are paying more interest than principal, and this tax deduction can be quite helpful if it makes sense for you to itemize!
Story continues below…
After 8 long years of renovations, this New York classic is finally re-opened, with condos available for those who want to take a sip in the Peacock Alley after taking a dip in the Starlight Pool!
For everyone, even if you are not itemizing:
3. 17.5% Property Tax Abatement for NYC Co-op/Condo primary residents!
Don't leave money on the table!! For co-op an condo homeowners in NYC, the NYC Co-op/Condo Tax Abatement: is the NYC government’s reward for making NYC your your primary residence! You get a property tax abatement of 17.5%! For a $12,000 annual tax bill, you can save $2,100, a bit over two months’ taxes!
Special Note: Individual owners do not apply; the building board or managing agent does. Certify your unit is your primary residence with your management office before the early-year deadline (usually February 15th) to ensure you are included for the next tax year.
4. Capital Gains Exemption for Primary Residence
This is the one that still feels like magic to people: If you sell your primary home after living there at least two of the last five years, you may be able to exclude $250,000 (single) or $500,000 (married) of profit from taxes. This is one of the most powerful wealth-building tools in real estate, especially if you make your purchase during a market downturn (Manhattan, for example, is down 10-15%), in a buyer’s market, locking in future appreciation that can be tax-free
Visiting my dear friend Chang in San Francisco in early November before her baby arrives!
So… Is Owning Still Worth It?
For many people, yes.
Not because of one single deduction or credit, but because of the whole picture: stability, lifestyle choices, long-term value, a bit of tax relief, and a future you get to shape.
If you’re thinking about making a move in 2026 or just trying to understand your options, reply to this email. I’m always happy to walk through scenarios with honesty, clarity, and zero pressure.
My warmest holiday wishes,
Judy
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