Birmingham, AL 35242 Real Estate Market Report

ZIP Code: 35242
Report Date: May 2026
Market Temperature: NEUTRAL
Scope: This ZIP code analysis focuses on single-family residential (SFR) properties. Metrics are calculated from recent sales and active listings within the past 90 days.

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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 the 35242 area are averaging 6.35%, reflecting a slight decline from the 6.57% average observed earlier in 2026.

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 primary market indicator, median sold price, is 499,450, which points to realized transaction values that are meaningfully below asking expectations given the median listing price of 630,000 and may indicate persistent pricing friction between sellers and buyers; monitor negotiated sale gaps.

2. Liquidity appears muted with a median days on market of 112, which suggests slower sales velocity and that transactions may require more time to reach agreement in this ZIP; slower transaction velocity may pressure time-sensitive sellers.

3. Market direction shows a price year-over-year trend of up while rent performance also displays a rent year-over-year trend of up, supporting demand-side resilience for both owners and landlords; price and rent growth may sustain investor interest.

4. Supply context in the analyzed sample points to relatively constrained active supply, and the broader market is characterized as market temperature neutral, with borrowing costs subject to interest rate pressure described as moderate (local 30-year averages around 6.35%), so financing sensitivity should be treated as a caution when modeling deal feasibility; balanced but rate-sensitive.

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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.

Birmingham, AL 35242 Real Estate Market Report

ZIP Code: 35242
Report Date: May 2026
Market Temperature: NEUTRAL
Scope: This ZIP code analysis focuses on condominium properties. Metrics are calculated from recent condo sales and active listings within the past 90 days.

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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 in the 35242 area are averaging 6.35%, reflecting a slight decline from the 6.57% average observed earlier in 2026.

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 primary market indicator is the $309,000 median sold price, which signals the representative recent sale level for the ZIP; given other metrics, this suggests pricing has firmed around that transaction benchmark.

2. Liquidity appears slow despite transaction relevance: the 395 median days on market indicates extended marketing timelines and moderate sales velocity, which may reflect pricing friction rather than acute distress.

3. Relative value context: the $180 median price per square foot combined with a $1,950 median market rent suggests rent-supported pricing for investors and owner-occupiers, while rent trending up supports continued income-side demand.

4. Market backdrop and financing: price trends are up year-over-year while overall marketTemperature is neutral; interestRatePressure is moderate, and local 30-year fixed mortgage rates are reported at 6.35% (slightly down from 6.57% earlier in 2026), which may modestly ease buyer affordability constraints.

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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.