Tuscaloosa, AL 35405 Real Estate Market Report

ZIP Code: 35405
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

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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 Tuscaloosa area are approximately 6.35%, reflecting a stable market environment for property owners compared to 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 indicator of recent transaction activity is the median sold price 259,900, which anchors market value and suggests realized pricing is below asking levels given the median listing price 289,900—this gap may indicate pricing friction between seller expectations and recent closed transactions.

2. The market shows ongoing appreciation with a price year-over-year trend up; up price momentum appears alongside a long sales cycle as reflected by the median days on market 218, which suggests slower sales velocity rather than immediate clearance of new supply.

3. Inventory in the analyzed sample appears to represent a relatively constrained active supply relative to recent closings, which combined with the median price per square foot 137 may sustain seller pricing power in well-positioned SFR and condo listings; this characterization appears balanced with the reported market temperature of neutral (stable).

4. Rental fundamentals are supportive for investors: the median market rent 1,595 and a rent year-over-year trend up (up) point to rising rental demand, but elevated financing costs—interest rate pressure elevated and local 30-year fixed mortgage rates ~6.35%—elevated—may pressure affordability and shift some buyers toward renting.

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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.

Tuscaloosa, AL 35405 Real Estate Market Report

ZIP Code: 35405
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

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

Liquidity metrics unavailable due to insufficient data quality.

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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 Tuscaloosa area are approximately 6.35%, reflecting a stable market environment for property owners compared to 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-value indicator, median sold price, is not available in the provided metrics, so representative transaction pricing cannot be stated explicitly; analysis instead relies on the documented price trend and a sample of 63 sold properties analyzed (sample-limited visibility), which may limit granularity when assessing recent realized values and liquidity.

2. The price year-over-year trend: up combined with a market temperature: neutral suggests recent appreciation without overheating; this pattern appears to indicate moderate upward pricing pressure while overall market balance and transaction pace remain neither strongly favoring buyers nor sellers.

3. The median market rent: $1,595 and the rent year-over-year trend: up confirm strengthening rental demand, which may support investor interest in SFR and condominium assets; however, elevated interest-rate pressure could affect acquisition affordability and underwriting (rising rents).

4. Elevated interest rate pressure is present alongside local mortgage pricing noted as: Current 30-year fixed mortgage rates in the Tuscaloosa area are approximately 6.35%, reflecting a stable but higher-rate financing environment that may constrain some buyers and increase sensitivity to price and cash-flow projections.

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Notable Properties

The following 4 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.