Birmingham, AL 35222 Real Estate Market Report

ZIP Code: 35222
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

As of February 2026, the Birmingham, AL (ZIP: 35222) market showcases a median sold price of $399,375, reflecting a robust demand despite the challenges posed by moderately elevated interest rates. The neighborhood has increased up since 2023, indicating a positive trend in property values. This upward movement in sold prices, in conjunction with a median listing price of $349,950, suggests a notable pricing gap that may create opportunities for negotiation among buyers and sellers alike.

Market dynamics reveal median days on market at 241, suggesting slower sales velocity and a potential for pricing friction. Elevated inventory levels relative to sales activity indicate a shift towards a more balanced market, with buyers adapting to the current interest rate environment. The overall market temperature is classified as neutral, indicating stability but also a need for careful navigation by prospective buyers and sellers in this evolving landscape.

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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 the Birmingham AL market around 5.875% to 6.17% are slightly lower than the 6.17% to 6.20% seen a month ago, suggesting a modest cost opportunity for new financing.

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. $399,375 is the current median sold price, indicating a positive trend in property values in the area.

2. $349,950 as the median listing price suggests a notable pricing gap, which may create negotiation opportunities for buyers.

3. With 241 days as the median days on market, the market is experiencing slower sales velocity, indicating potential pricing friction.

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

5. $1,376 is the median market rent, reflecting the area's rental demand amidst rising property values.

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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.