So because we're about to buy a house, we're cutting back on gift giving this year. We won't be buying gifts for my two 95-year-old grandmothers, nor my aunt and uncles. They all live in New York or Florida. I truly don't think they'll mind and will understand.
Instead, I'm sending Christmas cards I had made with our pictures on them and a newsletter-style letter I made copies of about our year. It ends with us saying our offer on the house had just been accepted.
So -- do you think I need to say that we're cutting back and won't be buying gifts? Or is that tacky? If I did, it would probably have to be a handwritten note on the printed letter. What do you think?

Re: Gift etiquette - wwyd?
Ditto. I don't think you have to give an explanation. And if they don't "get it" from your letter and ask why they didn't get a gift, that would be much worse etiquette on their part.