35406
Tuscaloosa, Alabama

The 35406 ZIP code reports a median sale price of $525,000 as of February 2026, marking a 3.4% year-over-year increase that suggests measured appreciation rather than explosive growth. Homes are moving at a moderate pace with an average 38 days on market, while only 12% of properties close above asking price. This combination of metrics indicates a market that has cooled from peak frenzy but maintains steady transactional activity without significant buyer urgency or seller desperation.

These conditions favor patient buyers with financing secured who can leverage the 38-day average market time to negotiate terms without facing widespread bidding wars, given that 88% of sales close at or below list price. Sellers with properly priced homes still benefit from the 3.4% annual appreciation and sub-40-day absorption rates, though they cannot expect the premium pricing dynamics seen in tighter markets. Investors seeking cash flow over rapid appreciation may find the $525,000 entry point workable if rental yields support the basis.

The PropIQ score of 75 signals neutral-to-stable conditions with limited directional conviction in the near term. The relatively low above-list percentage combined with steady but unspectacular price growth suggests watching inventory levels and days-on-market trends for early signals of shift. Any contraction below 30 days on market or above-list sales exceeding 20% would indicate tightening, while DOM extending past 50 days could signal softening demand against the current price trajectory.