35224
Birmingham, Alabama

The 35224 ZIP code shows a contracting market with a median sale price of $58,000, down 1.7% year-over-year as of February 2026. Homes are averaging 86 days on market, indicating slower absorption than competitive Birmingham submarkets. Only 13% of properties sell above list price, confirming limited buyer competition and weak pricing power for sellers. This negative price momentum in an already-constrained price segment signals underlying demand challenges rather than seasonal fluctuation.

Value investors seeking cash-flowing rental properties may find entry points at the $58,000 median, but the negative price trend suggests capital appreciation should not factor into underwriting. Cash buyers can leverage the 86-day DOM to negotiate below-ask purchases, particularly among the 87% of homes selling at or below list. Current homeowners face unfavorable selling conditions and should delay listings unless relocating, as the combination of declining prices and extended marketing periods compresses net proceeds.

The PropIQ score of 51 reflects elevated caution, suggesting continued price pressure through mid-2026 without catalysts for reversal. The sub-15% above-list metric combined with negative appreciation indicates this market has not found its price floor. Monitor days-on-market trends and the percentage of price reductions monthly; if DOM extends beyond 90 days or the above-list percentage drops below 10%, further downward repricing becomes probable.