35078
Birmingham, Alabama

ZIP code 35078 in Birmingham shows a cooling market with median sale prices at $215,000, down 16.7% year-over-year as of February 2026. Homes are sitting for an average of 139.5 days before selling, nearly triple the 45-60 day benchmark of balanced markets. Despite the price decline and extended marketing periods, 50% of sold properties still close above asking, suggesting persistent competition for well-priced inventory even as overall demand softens across the ZIP.

This environment favors patient buyers with financing in place who can wait out the 139-5-day average absorption period without timing pressure. The 16.7% annual price decline creates entry points for cash investors targeting rental yields, particularly if they can identify the 50% of properties selling above list, which signals where desirable product remains. Sellers face headwinds and should price aggressively from listing day, as the extended days-on-market figure indicates overpriced inventory is being severely punished.

The PropIQ score of 70 signals neutral conditions with potential volatility, warranting close monitoring of whether the 50% above-list metric holds or contracts in coming months. If days-on-market extends beyond 150 while above-list sales drop below 40%, further price compression exceeding the current 16.7% decline becomes likely. Conversely, stabilization of DOM below 120 days would suggest the correction is finding a floor around the $215,000 median.