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 $80,000, reflecting a stable market environment. The median listing price stands at $80,950, indicating a slight pricing friction between seller expectations and actual market transactions. The neighborhood has experienced a flat price trend, suggesting that home values are stabilizing without significant appreciation or depreciation.

Market activity appears to be moderately paced, with median days on market at 226, indicating slower sales velocity. This extended time frame may suggest elevated inventory levels relative to sales activity, contributing to a neutral market temperature. While interest rates are trending down from recent highs, currently at approximately 5.86%, this may support buyer activity, although elevated interest rate pressure continues to be a concern for potential homebuyers. Overall, the market is showing signs of stabilization, with underlying demand supported by affordability relative to other metropolitan areas.

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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 the Birmingham AL market around 5.86% are 0.66% lower than the 6.52% average rate seen one year ago in February 2025.

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 $80,000 reflects stable market conditions, with a median listing price of $80,950 indicating slight pricing friction.

2. With median days on market at 226, the market is experiencing slower sales velocity, suggesting a need for strategic pricing adjustments by sellers.

3. The market temperature is currently neutral, indicating balanced conditions between supply and demand, with no significant upward or downward pressure on prices.

4. Interest rates have decreased to 5.86%, which is 0.66% lower than the previous year, potentially encouraging buyer activity despite ongoing elevated interest rate pressure.

5. The median market rent of $1,376 remains stable, supporting the underlying demand for housing in the 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.