Birmingham, AL 35228 Real Estate Market Report

ZIP Code: 35228
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 real estate market in Birmingham, AL (ZIP: 35228) is characterized by a median sold price of $82,500, reflecting a recent adjustment in home valuations. The neighborhood has decreased 8% since 2022, indicating a softening trend in property values. Despite this decline, the market remains relatively active, with moderate transaction volume suggesting a balance between supply and demand. Elevated inventory levels are present, which may indicate excess supply relative to sales activity, contributing to the slower sales velocity observed with a median days on market of 227.

The market temperature is currently assessed as neutral, suggesting that conditions are stabilizing after a period of heightened activity. While the median listing price stands at $79,950, the gap between listing and sold prices may create pricing friction for sellers. Additionally, rental demand remains robust, with a median market rent of $1,376, supporting modest rent increases across the metro area. This dynamic may provide opportunities for investors looking to capitalize on rental properties in the region.

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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

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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 5.875% to 6.19% are notably lower than the 6.87% average seen one year ago, presenting a cost opportunity for recent borrowers.

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 $82,500 indicates a decrease of 8% since 2022, reflecting a softening in home values.

2. With a median days on market of 227, the market is experiencing slower sales velocity, suggesting a longer time for properties to sell.

3. The median listing price is $79,950, which may create pricing friction against the sold price, indicating seller expectations may be misaligned with market realities.

4. The market temperature is neutral, suggesting a balanced environment despite elevated inventory levels.

5. Robust rental demand is evident with a median market rent of $1,376, supporting modest rent increases across the metro area.

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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.