Birmingham, AL 35235 Real Estate Market Report

ZIP Code: 35235
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: 35235) is characterized by a median sold price of $189,000, reflecting the actual market transactions and providing a clearer picture of local value trends. The market appears to be stabilizing, with a median listing price of $199,900, suggesting some pricing friction as sellers adjust expectations in response to current market conditions. Although there is no available data on year-over-year price trends, the overall market temperature is neutral, indicating a balanced environment with moderate transaction activity.

The median days on market stands at 160, which points to slower sales velocity and may indicate a need for sellers to be more competitive in pricing. Elevated inventory levels are present, suggesting excess supply relative to sales activity, which could further pressure pricing dynamics. The rental market is experiencing a down trend, with median market rent at $1,520, highlighting potential challenges for landlords in maintaining occupancy rates amidst high vacancy levels. Overall, while the market shows signs of stabilization, the combination of elevated inventory and slower sales velocity suggests a cautious approach for both buyers and sellers moving forward.

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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 6.01% are notably lower than the 6.8% average seen earlier in 2026, presenting a cost-saving 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 is $189,000, indicating a potential pricing adjustment as the market stabilizes.

2. With a median listing price of $199,900, there is notable pricing friction as sellers align with market realities.

3. The median days on market of 160 suggests slower sales velocity, indicating a need for competitive pricing strategies.

4. Elevated inventory levels indicate excess supply relative to sales activity, which may pressure future pricing.

5. The rental market is experiencing a down trend, with median market rent at $1,520, reflecting challenges in tenant retention.

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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.