Birmingham, AL 35222 Real Estate Market Report

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

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Executive Overview

As of March 2026, the median sold price in Birmingham, AL (ZIP: 35222) stands at $395,000, reflecting a market that has seen a slight cooling trend. The neighborhood has decreased 8% since 2022, indicating a shift in buyer sentiment and market dynamics. The elevated median listing price of $349,500 suggests that seller expectations may not fully align with current market realities, contributing to a slower sales velocity and extended days on market, now averaging 291 days.

The current market conditions are characterized by elevated inventory levels, providing buyers with a broader selection. This excess supply relative to sales activity may indicate a transition towards a more balanced market, although the overall transaction volume remains moderate. With interest rates exerting moderate pressure, the market temperature is classified as neutral, suggesting that while there are opportunities for buyers, the landscape is not overly competitive at this time.

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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, around 6.38% are lower than the recent average of 6.65% from one month ago, presenting a slight cost advantage 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. The median sold price of $395,000 indicates a market experiencing decreasing value trends since 2022.

2. With a median days on market of 291, the market is experiencing slower sales velocity, reflecting buyer hesitancy.

3. The median listing price of $349,500 shows a significant gap compared to sold prices, suggesting potential pricing friction for sellers.

4. Current market conditions are marked by neutral temperature, indicating a balanced environment for both buyers and sellers.

5. The median market rent is $1,376, which may influence buyer decisions as rental prices are also down year-over-year.

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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.