Birmingham, AL 35242 Real Estate Market Report

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

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Executive Overview

The Birmingham, AL market in February 2026 reflects a median sold price of $519,900, indicating a stable market despite recent fluctuations. This price point suggests a resilient demand supported by local wage growth, which continues to underpin buyer interest. The absence of historical sold price change data limits the ability to assess long-term trends, but current conditions appear to favor a balanced market as buyers adjust to the prevailing interest rate environment.

Transaction activity shows 127 days on market, indicating a slower sales velocity, which may suggest a need for sellers to align their expectations with market realities. The current median listing price of $605,000 indicates a significant gap between asking and sold prices, potentially creating pricing friction. Overall, the market is characterized by elevated inventory levels, which, combined with moderate sales activity, points to a shift towards a more balanced state in the near future.

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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 Birmingham, AL market around 6.09% are 0.78% lower than the 6.87% average seen one year ago, presenting a favorable refinancing window 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 of $519,900 reflects stable market conditions amidst recent fluctuations.

2. With 127 days on market, the market is experiencing slower sales velocity, indicating potential pricing friction for sellers.

3. The median listing price of $605,000 suggests a notable gap between seller expectations and actual market transactions.

4. Elevated inventory levels indicate excess supply relative to sales activity, contributing to a balanced market environment.

5. Current interest rate pressure is elevated, which may influence buyer behavior and overall market dynamics.

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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.