Birmingham, AL 35206 Real Estate Market Report

ZIP Code: 35206
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 35206 area, is currently characterized by a median sold price of $108,950, reflecting a slight depreciation in home values as the market has decreased 8% since 2022. This decline indicates a shift in buyer sentiment and market dynamics, where actual transaction prices are trending lower than previous periods. The median listing price stands at $114,000, suggesting a notable pricing gap that may create friction between seller expectations and buyer willingness to pay.

With a median days on market of 175, properties are experiencing slower sales velocity, indicative of a market that is adjusting to elevated inventory levels. The current market temperature is described as neutral, suggesting a balance between supply and demand, although the presence of excess supply relative to sales activity may lead to further adjustments in pricing and market strategies. Local economic fundamentals remain supportive, with relative affordability attracting relocating buyers, but the overall market appears to be in a state of cautious observation as it navigates these mixed signals.

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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

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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 5.875% are slightly lower than the early 2026 average of approximately 6.18%, presenting a marginal cost opportunity for new financing.

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 $108,950 indicates a pricing adjustment in the market, reflecting a decrease of 8% since 2022.

2. Properties are taking a median of 175 days on market, suggesting slower sales velocity and potential buyer hesitance.

3. The median listing price of $114,000 reveals a pricing gap that may create friction between seller expectations and buyer willingness.

4. Elevated inventory levels suggest moderate sales activity, with excess supply relative to recent transaction volumes.

5. The median market rent of $1,376 shows an upward trend in rental prices, indicating potential opportunities for investors.

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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.