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

---

Executive Overview

In Birmingham, AL (ZIP: 35206), the median sold price stands at $109,999, reflecting the actual market transactions and providing a clearer picture of current value trends. The market appears to be stabilizing, with a median days on market of 171, indicating a slower sales velocity. This extended time frame may suggest a need for sellers to adjust expectations in light of the current market dynamics.

The inventory situation is characterized by elevated inventory levels, which may contribute to a neutral market temperature. While some segments still favor sellers, the overall balance between supply and demand is shifting, leading to a more moderated market environment. The median listing price of $115,000 indicates a pricing gap that could create friction in negotiations, as sellers may need to align more closely with actual sold prices to facilitate transactions.

---

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.

---

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.

---

Rental Market

---

Property Taxes

---

Liquidity & Velocity

---

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 5.88% are notably lower than the 2026 average forecast of 6.18%, suggesting property owners who locked in earlier in the year secured a favorable rate.

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

---

Key Findings

1. The median sold price of $109,999 indicates a stable market, though sellers may need to adjust expectations given the median listing price of $115,000.

2. With 171 days on market, the sales velocity is relatively slow, suggesting a cautious buyer sentiment and potential pricing adjustments.

3. The market temperature is currently neutral, reflecting a balance between elevated inventory levels and moderate sales activity.

4. Rental rates are under pressure, as indicated by a down trend in the rent year-over-year trend, which may affect investor sentiment.

5. Interest rate pressure remains elevated, with current 30-year fixed mortgage rates around 5.88%, slightly below the forecasted average of 6.18% for 2026.

---

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.