Birmingham, AL 35204 Real Estate Market Report

ZIP Code: 35204
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

The Birmingham, AL market in February 2026 is characterized by a median sold price of $61,000, reflecting recent transaction activity that suggests a stabilization phase. While the market has not shown a historical price change percentage, the current conditions indicate modest appreciation trends despite previous declines. This suggests that the market may be finding its footing amidst fluctuating buyer sentiment and economic pressures.

Transaction velocity appears to be slowing, with homes taking a longer time to sell, evidenced by a median days on market of 142 days. The elevated inventory levels relative to sales activity indicate a potential excess supply, which may contribute to a more balanced market environment. Strong local affordability continues to support buyer demand, although elevated interest rate pressure may temper some of this activity moving forward.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

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Property Taxes

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Birmingham AL around 6.09% are 1.78% lower than the 7.87% average rate seen earlier in 2026, presenting a significant cost opportunity for property owners.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The median listing price of $106,278 indicates a significant gap compared to the median sold price of $61,000, suggesting potential pricing friction in the market.

2. With a median days on market of 142, homes are experiencing slower sales velocity, which may indicate a shift towards a more balanced market.

3. The median market rent stands at $1,376, reflecting ongoing rental demand that supports the overall housing market despite some pressures.

4. Current mortgage rates around 6.09% present a cost opportunity for buyers, being significantly lower than earlier rates this year, which may stimulate market activity.

5. The market temperature is described as neutral, suggesting a balanced environment where neither buyers nor sellers hold a distinct advantage.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.