Birmingham, AL 35234 Real Estate Market Report

ZIP Code: 35234
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 housing market in Birmingham, AL (ZIP: 35234) is characterized by a median sold price of $84,000, reflecting a significant gap from the median listing price of $179,900. This disparity suggests potential pricing friction as sellers may need to adjust expectations to align with current buyer sentiment. The neighborhood has experienced a neutral market temperature, indicating a balance between supply and demand, although the elevated median days on market of 176 days points to slower sales velocity and may indicate a cooling trend in buyer activity.

Inventory levels appear to be elevated, with a notable excess supply relative to sales activity observed in the analyzed sample. This condition, coupled with elevated interest rate pressure, may further impact buyer confidence and transaction volume. Despite these challenges, the median market rent of $1,376 suggests ongoing demand for rental properties, which may provide a buffer against declining sales prices in the broader market context.

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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 near 6.11% in the Birmingham, AL market are 0.78% lower than the 6.89% average from one year ago, indicating a cost opportunity for recent refinancers.

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 $84,000 indicates significant pricing friction compared to the median listing price of $179,900, suggesting sellers may need to adjust expectations.

2. With 176 days on market, properties are experiencing slower sales velocity, indicating a potential cooling trend in buyer activity.

3. The market is currently experiencing elevated inventory levels, which may lead to increased competition among sellers and pressure on pricing.

4. The median market rent of $1,376 remains strong, suggesting sustained demand for rental properties despite the cooling sales market.

5. Interest rate pressure is elevated, which may further dampen buyer enthusiasm and affect overall market liquidity.

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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.