Birmingham, AL 35217 Real Estate Market Report

ZIP Code: 35217
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

The Birmingham, AL (ZIP: 35217) market is currently characterized by a median sold price of $85,000, reflecting the actual transaction values in the area. This price point indicates a market that is stabilizing after recent fluctuations, with a median listing price of $96,450, suggesting some pricing friction as sellers adjust expectations to align with buyer behavior. The market appears to be transitioning from a previously hot state toward a more balanced environment, though the absence of historical sold price change data limits a deeper understanding of long-term trends.

Transaction activity is moderate, with median days on market recorded at 200 days, indicating a slower sales velocity. This extended timeframe may suggest that buyers are exercising caution, leading to elevated inventory levels relative to sales activity. Despite the median market rent being $1,376, which remains attractive, the overall market temperature is classified as neutral, reflecting a balanced dynamic between supply and demand. Elevated interest rate pressure may also be influencing buyer sentiment, contributing to the current market conditions.

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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 35217 are around 5.875% to 6.18% compared to historical 2026 origination rates which were near 7.0%.

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 is $85,000, indicating a potential pricing adjustment as the market stabilizes.

2. With a median listing price of $96,450, there is notable pricing friction between seller expectations and buyer willingness.

3. The median days on market of 200 days suggests a slower sales velocity, indicating that buyers may be taking more time to make purchasing decisions.

4. The market temperature is currently neutral, reflecting a balance between supply and demand conditions.

5. Elevated interest rate pressure may be impacting buyer activity, contributing to the current market 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.