35546
Tuscaloosa, Alabama

The 35546 ZIP code posted a median sale price of $374,900 as of February 2026, marking a significant 26.0% year-over-year increase that substantially outpaces national appreciation rates. Properties are moving at a moderate pace with an average 58 days on market, while 23% of homes sell above asking price—indicating selective but present bidding competition. This price acceleration suggests demand continues to outstrip supply despite the nearly two-month absorption period.

Sellers with properly priced inventory hold leverage in this market, particularly given the double-digit appreciation and nearly one-quarter of transactions closing above list. Patient buyers willing to endure the 58-day average search period may avoid bidding wars on 77% of listings that sell at or below asking price. Investors should scrutinize cash-on-cash returns carefully, as the 26.0% annual price growth rate creates elevated entry costs that may compress initial yields compared to historical baselines in this market.

The PropIQ score of 70 signals neutral conditions ahead, suggesting the 26.0% appreciation rate will likely moderate as price growth of this magnitude rarely sustains beyond 12-18 months. The combination of sub-60-day inventory turn and strong year-over-year gains indicates the market hasn't yet tipped into correction territory. Monitoring monthly absorption rates and the percentage selling above list will provide early signals of whether demand sustains current price levels or normalizes toward single-digit appreciation.