Birmingham, AL 35242 Real Estate Market Report

ZIP Code: 35242
Report Date: March 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

---

Executive Overview

The median sold price in Birmingham, AL (ZIP: 35242) stands at $499,000, reflecting a market that has shown signs of stabilization. With the market temperature categorized as neutral, this suggests a balance between buyer demand and available inventory. The absence of significant price fluctuations indicates that the neighborhood has remained relatively stable, with no historical sold price change percentage available to highlight any recent trends.

Current market conditions reveal elevated inventory levels, which may indicate a shift towards a more balanced environment. The median days on market has reached 158 days, suggesting slower sales velocity and longer transaction times. This trend, coupled with elevated interest rate pressure, appears to be influencing buyer demand, leading to a more cautious approach in the market.

---

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.

---

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.

---

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.

---

Property Taxes

---

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.

---

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 average around 6.65% compared to lows near 5.50% seen in February 2026, indicating a recent rate increase for new loans.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

---

Key Findings

1. The median sold price of $499,000 indicates a stable market, with no significant price fluctuations observed recently.

2. With 158 days as the median days on market, the market is experiencing slower sales velocity, reflecting a cooling trend in buyer activity.

3. The median listing price is $627,000, creating a notable pricing gap that may suggest pricing friction between seller expectations and market realities.

4. Elevated interest rate pressure, currently around 6.65%, is contributing to weaker buyer demand, further impacting sales activity.

5. The median market rent of $2,000 remains stable, indicating a consistent rental market amidst the overall market changes.

---

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.