Falmouth, MA Real Estate Market Trends: 2025 Update

Set along the scenic southern coast of Cape Cod, Falmouth remains one of Massachusetts' most desirable destinations for homeownership. With its historic charm, harborfront neighborhoods, and quintessential New England appeal, the area has long attracted buyers seeking a mix of seasonal getaways and year-round luxury living. In 2025, the local housing market is characterized by evolving economic conditions, steady buyer interest, and strategic repositioning by sellers as they navigate a shifting landscape.

As of April 2025, the Falmouth housing market is aligning more closely with the broader economic climate. While inventory remains relatively constrained, pricing trends and buyer activity indicate a gradual shift toward a more balanced market.

Month-to-month, the number of new listings in April dropped by 10.61% compared to the same period last year, totaling 59 new single-family homes brought to market. Meanwhile, the number of homes sold fell by 12.2%, with just 36 closings—a reflection of tempered buyer urgency in light of recent mortgage rate adjustments, longer decision cycles, and a seasonal sales cycle that has been slow to emerge.

The most telling indicator of change is the median sold price, which declined by 12.29% year-over-year in April, now sitting at $692,500, compared to $789,500 in April 2024. Similarly, the median list price for homes that sold in April dropped 10.83% to $712,500. These declines suggest that while sellers are still aiming high, the final sales prices are coming in more conservatively.

That said, it's not all pullback. The average sold price rose 10.22% year-over-year, reaching $1,038,625, indicating that high-end homes continue to command premium values, particularly those with coastal proximity, modern updates, or a unique historical pedigree.

One of the key shifts in today's Falmouth market is the increased time to sale. The median days on the market jumped 38.46% to 72 days, with the average now at 109 days, up from 87 days last year. These numbers reflect a market where buyers are taking longer to decide, and listings are lingering unless they're sharply priced or move-in ready.

Despite the softening in pace, homes are still selling very close to the asking price. The April list-to-sale price ratio sits right at 100%, only marginally down from the same period last year. This indicates that while sellers may be adjusting their expectations slightly, they are still achieving near-full prices, especially those competitively positioned from the outset.

Year-to-date, the marketplace continues to maintain its resilience.

• Median sold price YTD is $830,000, up a healthy 11.04% from 2024.
• Average sold price YTD is $1,084,624, reflecting a 12.58% increase over last year.
• New listings and sales are down slightly YTD (new listings by 2.91%, sold listings by 15.74%), reinforcing the supply constraints and slower pace of turnover.

These year-to-date price gains are a testament to the underlying demand for homes in Falmouth, particularly those offering water views, updated amenities, or proximity to town centers.

Rising interest rates have been a prominent factor nationwide, and Falmouth is no exception. According to a recent Forbes mortgage forecast, rates for a 30-year fixed mortgage remain elevated compared to the historic lows of 2020–2021, with average rates now hovering between 6.75% and 7.1% as of the second quarter of 2025. As of the end of May 2025, a 30-year fixed-rate mortgage sat at 6.86%, slightly above the 52-week average.

For buyers relying on traditional financing, this has led to more calculated decision-making and increased scrutiny of value versus cost. But for cash buyers, who remain a steady force in Cape Cod markets, rising rates have little bearing. Many of the high-end sales in Falmouth are still closing as all-cash transactions, insulating that segment from the mortgage-rate conversation altogether.

One of the more encouraging signs for prospective buyers is that inventory is slowly expanding. While April's new listings were down year-over-year, the overall market has seen a broader range of properties, especially those in the $ 700,000 to $1.2 million range, become available in 2025. This increase in available homes is giving buyers more choice and less urgency, helping shift the market closer to equilibrium.

For sellers, it's a clear signal that competitive pricing and high-caliber presentation—think updated kitchens, refreshed curb appeal, and strategic staging—are more critical than ever. Homes that are turnkey and appropriately priced continue to command strong attention and offers, even in a slightly slower sales environment.

What continues to set Falmouth apart is its enviable mix of maritime charm, year-round community, and investment potential. Located just over an hour from Boston and a short ferry ride to Martha's Vineyard, it's an ideal second-home location that feels both accessible and private.

The town's amenities—beaches, nature trails, the Shining Sea Bikeway, and bustling Main Street—are bolstered by a strong local economy and an increasing number of year-round residents. This dynamic supports a healthy rental market, particularly for investors eyeing seasonal income or those planning to retire in place within a few years.

For buyers, the current Falmouth market offers a promising window of opportunity. Softer median prices, longer days on the market, and more inventory give you the chance to find the right property without the pressure of pandemic-era bidding wars.

For sellers, the key is strategic positioning. High-end homes continue to draw strong interest, mainly when thoughtfully priced and professionally marketed. Even in a shifting market, demand for turnkey, coastal New England real estate remains steady.

As we look ahead to the second half of 2025, keeping a close eye on interest rate trends and local inventory levels will be crucial. Falmouth's combination of enduring appeal, limited land availability, and growing buyer interest suggests it's likely to remain one of Cape Cod's most desirable real estate markets, regardless of how the national picture evolves.

If you're interested in learning more about Cape Cod, including navigating Falmouth's extraordinary luxury real estate market, contact the O'Neill Group today. Whether buying or selling, let our experience and expertise guide you through your next high-end real estate transaction.