Tuscaloosa, AL 35406 Real Estate Market Report

ZIP Code: 35406
Report Date: April 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 Tuscaloosa, AL are 6.125%, reflecting a 0.445% decrease 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. median sold price: $488,000 is the best indicator of current market value and recent transaction activity in 35406; the price year-over-year trend is up, suggesting transaction-level pricing is rising with medium/high confidence.

2. There is a notable pricing gap between median listing price: $799,900 and the median sold price, which may indicate pricing friction and seller expectations that exceed recent transaction levels; sellers should consider aligning list strategy with recent sold-price realizations.

3. median days on market: 229 points to slower sales velocity and reduced liquidity relative to faster-turn markets; this longer marketing time may indicate buyers are exercising greater selectivity and that sellers may need more aggressive positioning or concessions to shorten time to contract.

4. Rental and finance context is supportive but cautious: median market rent: $2,000 and a rent year-over-year trend that is up support continued investor interest, while interest rate pressure is characterized as moderate and current 30-year fixed mortgage rates are reported at 6.125%, which may temper purchasing power even as the overall market temperature remains neutral.

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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 35406 Real Estate Market Report

ZIP Code: 35406
Report Date: April 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 Tuscaloosa, AL are 6.125%, reflecting a 0.445% decrease 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. median sold price: $261,500 is the primary indicator of market value and recent transaction activity; this level suggests modest upward pricing pressure consistent with the reported up price year-over-year trend, while still reflecting realized sale values rather than asking price signals.

2. median days on market: 676 signals slower sales velocity and notable pricing friction; longer time-to-contract may indicate buyers are exercising greater selectivity or that some listings require price adjustments to align with achieved sale prices.

3. median price per square foot: $210 combined with median market rent: $2,000 frames the local valuation context for both SFR and condo assets; these realized metrics suggest rents are rising (up) while price levels remain supported by recent transactions, which may favor buy-and-hold strategies for investors seeking rental growth rather than quick turnover.

4. Interest-rate context is mixed: the market temperature is reported as neutral with balanced conditions, while interest rate pressure: moderate and current mortgage pricing at 6.125% (a 0.445% decrease from earlier 2026 averages) may modestly improve buyer affordability and support steady demand without creating a sharp market swing.

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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.