Birmingham, AL 35206 Real Estate Market Report

ZIP Code: 35206
Report Date: May 2026
Market Temperature: NEUTRAL
Scope: This ZIP code analysis focuses on single-family residential (SFR) properties. Metrics are calculated from recent sales and active listings within the past 90 days.

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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 are 6.38%, which is 0.6% higher than the 5.78% average observed earlier in 2026.

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 neighborhood's primary indicator of market value is the median sold price 125,000, which serves as the representative recent sale benchmark and sits above the median listing price 119,950, a gap that may indicate seller pricing that has been achieved in recent transactions rather than just asking‑price intent.

2. The market is showing slower transaction velocity: the median days on market 280 suggests extended listing durations and, together with elevated inventory relative to sales activity, may indicate pricing friction or longer negotiation cycles rather than rapid turnover.

3. Price momentum is positive with year‑over‑year price trend labeled up, while the median price per square foot 94.62 provides a baseline for unit-level valuation; rent growth is reported as flat, so rental upside appears limited in the near term.

4. Interest rate conditions present a moderating factor: current 30‑year fixed mortgage rates at 6.38% and interest rate pressure described as moderate mean financing costs are a meaningful consideration for buyers, and may temper buyer urgency despite the upward price trend.

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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.