Birmingham, AL 35205 Real Estate Market Report

ZIP Code: 35205
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

The Birmingham market, particularly in the 35205 area, is currently exhibiting a median sold price of $379,000, reflecting a stable market environment. This price point indicates a consistent demand for properties, although the market has shown mixed signals year-over-year. The absence of significant price fluctuations suggests that the neighborhood has maintained a flat price trend, which may indicate a balanced market where buyers and sellers are negotiating effectively without drastic changes in value.

Transaction activity appears to be moderate, with 216 days on market indicating a slower sales velocity. This extended time frame may suggest that while there is demand, buyers are taking their time to make decisions, potentially due to elevated inventory levels. The current median listing price stands at $349,949.50, which, while slightly lower than the sold price, indicates a pricing friction that could affect seller expectations and market dynamics moving forward. Overall, the market is stabilizing, moving away from previous peaks and towards a more sustainable growth trajectory.

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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

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

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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 are around 5.875% to 6.19%, which is notably lower than the early 2026 average of 6.17% for property owners in this market.

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 sold price of $379,000 indicates a stable market, reflecting consistent demand despite a flat price trend.

2. With 216 days on market, properties are experiencing slower sales velocity, suggesting buyers are cautious and taking time to make decisions.

3. The median listing price of $349,949.50 shows a slight gap compared to the sold price, indicating potential pricing friction in negotiations.

4. Elevated inventory levels relative to sales activity may suggest an excess supply, impacting overall market liquidity.

5. The rental market is experiencing a down trend, with median market rent at $1,450, which may affect investor sentiment and future rental demand.

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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.