Tips from your Local Real Estate Expert
SANDRA GARCIA, REALTOR® AT CORCORAN INFINITY PROPERTIES IN ALPINE NJ
A groundbreaking bill out of Capitol Hill could transform homeownership across the country, especially in Bergen County. I’m Sandra Garcia, an Alpine resident and Realtor® at Corcoran Infinity Properties in Alpine NJ.
In a recent interview with realtor.com, Congresswoman Marjorie Taylor Greene introduced her No Tax on Home Sales Act, a proposal to eliminate the federal capital gains tax on the sale of a primary residence. She describes it as a “gift to the American people,” particularly aimed at helping retirees and empty nesters, as many face high taxes when selling homes whose equity has increased over time.
The logic is clear: since 1997, the maximum capital gains exclusion has remained at $250,000 for singles and $500,000 for couples. Above that limit, homeowners could pay up to 20% in federal taxes on their equity. These limits now impact average families significantly, not just high-end investors.
In New Jersey, the average home equity gain this past year is among the highest in the nation. In Bergen County, home prices have more than doubled since the early 2000s across all price points. For instance, in Paramus, the average home price appreciation increased from about 2.7% per year over the previous decade to roughly 5.1% annually between 2022 and 2025, representing an 89% acceleration in equity growth. Many of our other towns, like Demarest and Cresskill, saw similar surges, with growth rates rising by 85% or more during the same period.
For our county, the average federal capital gains tax bill on the sale of a long-held home can now exceed well over $100,000, especially for luxury properties, where price gains can easily reach 100% or more over the last decade.
Congresswoman Greene and many in the industry believe these tax burdens discourage move-up sellers and downsizers from listing their homes, contributing to our inventory shortage. Local developers, including Bergen County’s own Dalex Builders, see how this restrains redevelopment and new construction opportunities, further straining the local market, as the tax burden discourages sellers and disrupts the pipeline for renovations and new builds.
The National Association of Realtors supports the bill, with executive Shannon McGahn stating, “A homeowner shouldn’t be taxed like a speculator.” While the No Tax on Home Sales Act faces an uncertain path in Congress, it’s already fostering an important conversation. If passed, it could free up inventory and allow everyday Americans, especially in Bergen County, to unlock their hard-earned wealth without a punitive tax bill.
I’m Sandra Garcia, as always, I’m ready to navigate these changes for buyers, sellers, and investors. My commitment is to guide you through every market shift, ensuring you can build and realize the wealth you’ve earned in Bergen County real estate.
