Birmingham, AL 35209 Real Estate Market Report

ZIP Code: 35209
Report Date: April 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

The real estate market in Birmingham, AL (ZIP: 35209) is currently characterized by a median sold price of $544,000, reflecting a stable market environment. The neighborhood has increased 15% since 2023, indicating a positive trend in property values. This upward movement in sold prices suggests a healthy demand relative to supply, although the median days on market stands at 256, indicating a slower sales velocity.

Inventory conditions reveal elevated inventory levels, with active listings surpassing sold properties in the analyzed sample. This excess supply relative to sales activity may indicate a need for sellers to adjust expectations, particularly as the median listing price is recorded at $479,900. Overall, the market temperature remains neutral, suggesting a balanced dynamic between buyers and sellers, with moderate interest rate pressure influencing buyer behavior.

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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

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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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 are averaging 6.41% compared to approximately 6.25% when loans originated in early 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. $544,000 is the median sold price, indicating a strong upward trend in property values since 2023.

2. 256 days on market suggests a slower sales velocity, which may indicate pricing friction for sellers.

3. $1,680 is the median market rent, reflecting steady rental demand amidst moderating rent growth.

4. The median listing price of $479,900 shows a notable gap compared to the sold price, suggesting potential adjustments may be needed by sellers.

5. Current mortgage rates are averaging 6.41%, which may exert moderate pressure on buyer affordability.

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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.