Birmingham, AL 35209 Real Estate Market Report

ZIP Code: 35209
Report Date: May 2026
Market Temperature: HOT
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

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 Hot market indicates strong buyer demand with limited inventory, typically characterized by rising prices, quick sales (low days on market), and inventory levels below historical averages.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Birmingham, AL are 6.35% compared to 5.65% for typical loans originated 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 median sold price is 532,450, which serves as the primary indicator of recent market value and realized transactions in 35209; this level, combined with an overall hot market temperature, suggests continuing price appreciation and strong buyer willingness to transact at recent sold levels.

2. There is a notable gap between the median listing price of 459,000 and the median sold price of 532,450, which may indicate pricing friction where seller expectations and final transaction prices diverge; this gap appears to favor sellers and suggests competitive outcomes for well‑positioned listings.

3. The median days on market is 280, signaling slower sales velocity despite a hot market temperature; this prolonged marketing period may reflect a mix of high‑end inventory, pricing stratification, or transaction timing factors rather than weak demand alone, so underwriters and pricing strategies should account for longer holding periods.

4. Mortgage costs and rent dynamics create mixed affordability signals: current 30‑year fixed mortgage rates in Birmingham are 6.35% compared to 5.65% for earlier 2026 originations, interest rate pressure is characterized as moderate, and rent year‑over‑year trend is down; together these factors may temper buyer capacity even as price year‑over‑year trend remains up.

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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.

Birmingham, AL 35209 Real Estate Market Report

ZIP Code: 35209
Report Date: May 2026
Market Temperature: HOT
Scope: This ZIP code analysis focuses on condominium properties. Metrics are calculated from recent condo 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

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 Hot market indicates strong buyer demand with limited inventory, typically characterized by rising prices, quick sales (low days on market), and inventory levels below historical averages.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Birmingham, AL are 6.35% compared to 5.65% for typical loans originated 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 market signal is the $248,000 median sold price, which anchors recent transaction values and suggests that comparable SFR and condo sales are completing near that level rather than at asking price.

2. There is a notable listing-to-sale gap: the $315,000 median listing price appears meaningfully above the median sold price and suggests sellers are priced higher than recent transaction levels, which may create pricing friction or require negotiated concessions to transact.

3. Market velocity shows slower sales activity: the median days on market of 306 indicates extended marketing time relative to a fast-cycle market and may indicate slower transaction velocity even though headline conditions reflect a hotter market temperature.

4. Macro and rent signals provide mixed pressure: the market temperature: hot and price year-over-year trend: up support seller strength, while rent year-over-year trend: down and interest rate pressure: moderate (current 30-year fixed at 6.35% vs earlier 5.65%) introduce caution for investor buyers and financing-sensitive purchasers.

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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.