Birmingham, AL 35207 Real Estate Market Report

ZIP Code: 35207
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

The Birmingham housing market in early 2026 is characterized by a median sold price of $69,000, reflecting a stable market despite some recent fluctuations. The neighborhood has increased up since 2023, indicating a modest appreciation trend. This upward movement in sold prices suggests a resilient demand, although the market is currently experiencing elevated inventory levels, which may indicate a shift towards a more balanced state. The median days on market stands at 148, suggesting a slower sales velocity, which could be a factor for sellers to consider in pricing strategies.

In terms of rental dynamics, the median market rent is $1,376, but the rental market appears to be softening with a down trend year-over-year. This contrasts with the overall recognition of Birmingham as a desirable rental city, suggesting potential opportunities for investors. The current property tax rate of 0.73% remains competitive, which may further attract buyers and renters alike, despite the elevated interest rate pressure affecting overall market liquidity.

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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 the Birmingham, AL market around 6.09% are notably lower than the 6.87% average seen one year ago, presenting a cost advantage for recent borrowers.

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 $69,000 indicates a resilient demand in the market, with prices showing signs of up since 2023.

2. A median days on market of 148 suggests a slower sales velocity, which may require sellers to adjust their pricing expectations accordingly.

3. The median market rent is $1,376, but the rental market is experiencing a down trend year-over-year, indicating potential challenges for landlords.

4. The market temperature is currently neutral, suggesting a balanced environment for buyers and sellers alike.

5. With an elevated inventory relative to sales activity, there may be opportunities for buyers to negotiate more favorable terms.

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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.