Birmingham, AL 35208 Real Estate Market Report

ZIP Code: 35208
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 February 2026 reflects a median sold price of $82,000, indicating a stable transaction environment despite the challenges posed by elevated interest rates. This price point suggests that buyers are adapting to current market conditions, which may contribute to a balanced market atmosphere. The median listing price of $105,278 indicates a notable gap between asking and selling prices, which could create pricing friction for sellers as they adjust expectations to align with buyer sentiment.

Transaction activity appears moderate, characterized by 286 days on market, suggesting a slower sales velocity. This extended time frame may indicate a need for sellers to be more competitive in pricing, especially in light of the elevated inventory levels relative to sales activity. Overall, while the market temperature remains neutral, slight appreciation is forecasted for 2026, supported by relative affordability and a gradual tightening of inventory levels.

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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

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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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 5.8% to 6.1% are notably lower than the 2026 historical average rate of 6.21% seen earlier this year.

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 $82,000 indicates a stable market environment, with buyers adapting to current conditions.

2. With a median listing price of $105,278, there is a significant gap that may create pricing friction for sellers.

3. The median days on market of 286 suggests a slower sales velocity, indicating that properties are taking longer to sell.

4. The market temperature is currently neutral, suggesting a balanced environment without strong buyer or seller advantages.

5. Elevated interest rates are contributing to elevated inventory levels, which may affect future sales dynamics.

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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.