35223
Birmingham, Alabama

The 35223 market registers a median sale price of $689,000 as of February 2026, marking a slight 1.1% year-over-year decline that breaks from Birmingham's broader appreciation pattern. Properties move in 30.5 days on average, indicating sustained transaction velocity despite the price softening. The 40% above-list-price sale rate demonstrates continued competition among buyers, though this metric suggests selectivity rather than the broad bidding wars seen in tighter inventory conditions.

Sellers with well-positioned properties still extract premiums, as evidenced by the 40% above-ask close rate, but the negative price trajectory favors patient buyers willing to negotiate. This environment punishes overpriced listings while rewarding buyers who can close quickly on appropriately valued homes. Investors seeking cash-flow properties face compressed returns given the $689,000 entry point, making this primarily an owner-occupant market where the 30-day absorption rate allows adequate due diligence without urgency penalties.

The PropIQ score of 75 signals neutral conditions with downside risk, suggesting the 1.1% decline may extend if the above-list percentage contracts further in coming months. Buyers should monitor whether days-on-market creep beyond 35 days, which would confirm weakening demand and justify more aggressive offer strategies. The elevated median price relative to regional comparables makes this ZIP vulnerable to affordability constraints that could accelerate price normalization through 2026.