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Birmingham, AL housing market

The Birmingham housing market isn’t that competitive. The median home sales price in October 2024 has decreased in the past 3 months to $164,000. That’s up 5.8% and $9,000 higher than October 2023 of last year. That is higher than the Alabama state median home sales price of $276,900. Homes typically sell after 49 days on market, which is faster than the state average and higher than 45 days in October 2023 a year prior.

Housing market overview for

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Trended Median Home Values

How much do homes in Birmingham, AL cost?

The median home price in Birmingham was $164,000 in October 2024, up 5.8% from last year.

October's median sale price
$164K
Caret UpUp $9K and 5.8% since Oct 2023
Trended Homes Inventory

How many homes are available in Birmingham, AL?

The real estate market in Birmingham had 850 homes for sale in October and is up from 822 homes for sale the month prior and up from 811 homes in October 2023.

Homes for sale in October
850
Caret UpUp 39 and 4.8% since Oct 2023
Trended Homes Sold

How many homes are sold in Birmingham, AL?

There were 169 homes sold in October 2024, trending down from 203 homes sold a year ago.

Homes sold in October
169
Caret DownDown 34 and 16.7% since Oct 2023
Trended Median Days on Market

How long does it take to sell a home in Birmingham, AL?

Homes in Birmingham are staying on the market for 49 days. That’s 4 days slower than the median in October 2023, which means that the market is less competitive today.

Median days on market in October
49
Caret UpUp 4 and 8.9% since Oct 2023

Is it a buyer’s or seller’s market in Birmingham, AL?

It is considered a balanced market right now. Housing inventory is up since last year, which means supply is less constrained. Mortgage rates are 6.9%, making the average house payment $1,220, which is $347 higher than a year before.

Total months of housing supply available for sale is 5 months, up 22% from 4.1 month(s) in October 2023.

Months of Supply

The Months of Supply housing metric is an estimate of how long it would take to sell all the homes for sale relative to the number of homes sold each month. Historically, 5 to 6 months is the average. You may also hear this metric referred to as the "absorption rate."

Lower months of housing supply typically signal a seller’s market whereas when months of supply is greater than 6 months typically signal a buyer’s market.

Sales to Listing Ratio

Sales to Listing Ratios are an indicator of supply and demand. It is all the completed sales in the past month divided by the total number of active listings.

In a balanced real estate market, the total number of home sales to active listings ratio is between 0.12 and 0.2 while markets with a ratio higher than 0.2 favors seller’s, as homes are selling fast and there is limited inventory, while markets below 0.12 favor home buyers because there is a larger supply of homes to purchase.

Selling a house in Birmingham, AL

Home values have increased by 28.6% since last year, and the number of days it takes to sell a home has increased from 44 days in October 2023 to 49 days in October 2024.

The best time to sell your home in Birmingham is in March, when homes sell fastest and for the most money.

Sellers typically pay the commission of both the listing and buyer’s agents, which typically total 5-6% of the home sale price. That’s $9,840 paid in commission to the real estate agents. You’d also need to factor in closing costs, plus other fees and your mortgage payoff amount, to calculate the net proceeds from your home sale.

Buying a house in Birmingham, AL

Homes in Birmingham have a median price of $164,000, which means you’ll need $16,400 for a 10% down payment. Housing costs have increased 28.6% in the past year. When you’re several months out and have your down payment saved, make sure to get pre-approved for a mortgage and find a real estate agent.

Home values are only one part of the home affordability equation. When buying a house in Birmingham, don’t forget to also account for closing costs, which are typically 3-4% of the home cost. In addition to a down payment of $16,400 you should have $6,560 as well as budget for cash reserves, moving expenses and ongoing homeownership costs for home maintenance and repairs or HOA fees.

Birmingham home values are 70.7% cheaper than Tuscaloosa and 68.8% cheaper than the state median home value.

How does the Birmingham real estate market compare to other markets?

The Birmingham real estate market has a median sale price of $164,000, which is 68.8% lower than the state median sale price of $276,900. Compare other markets or nearby cities, as they can vary significantly.

Birmingham, AL
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Tuscaloosa, AL
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Alabama
Median home saleMedian home saleMedian home sale
$164,000$279,900$276,900
Days on marketDays on marketDays on market
493753
Monthly house payment
Monthly house payment
Monthly house payment
$1,220$1,946$1,928
Cost to buy a house
Cost to buy a house
Cost to buy a house
$22,960$39,186$38,766
Cost to sell a house
Cost to sell a house
Cost to sell a house
$11,480$19,593$19,383

Take the next step in Birmingham: Find an agent

Navigating the Birmingham housing market can be tricky, but you don’t have to go it alone. When you're ready to learn more, reach out to a local Birmingham real estate agent to get the process started. We recommend interviewing multiple candidates and coming prepared with a list of all your questions.

Birmingham, AL housing market FAQs

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