Reviewed by: Patience Itson
Home prices softening in the U.S.—here’s how Birmingham compares
Reading time: 3 minutes
In recent years, rising home prices–coupled with rising interest rates–have made home ownership out of reach for much of our community. But recent analysis by industry experts suggests that some relief might be coming for potential home buyers.
National trends indicate a softening of price increases in the real estate market, but home prices in many of Birmingham’s surrounding communities continue to rise at a faster rate than the national average.
Below, see the data we’ve found locally and how it compares to national trends.
Tracking home prices in the Birmingham area
Median home prices nationwide in April of 2024 were 6.1 percent higher than they were a year ago, which shows a much slower rate of increase than we have seen in the market over the last couple of years.
A report by Redfin shows asking prices have dropped on average nationwide.
However, many communities in the Birmingham metro have still seen home prices increase at a rate much higher than the national average.
Here’s how median home prices in Alabama’s most populated cities compare to the national median according to Redfin:
| Location | Median home price April 2024 | %Change YoY |
| U.S. | $432,812 | +6.1% |
| Birmingham | $190,000 | +14.3% |
| Alabaster | $321,700 | +10.9% |
| Gardendale | $245,000 | -1.2% |
| Homewood | $451,500 | -21.1% |
| Hoover | $420,000 | -1.8% |
| Irondale | $265,000 | -4.0% |
| Mountain Brook | $1 million | +20.1% |
| Pelham | $366,950 | +11.2% |
| Trussville | $410,000 | +5.3% |
| Vestavia Hills | $575,000 | +21.1% |
Homewood shows the most drastic drop in median home prices compared to April of 2023, one of four Birmingham metro municipalities on the list that came in below the national average.
By contrast, median home prices in Vestavia Hills and Mountain Brook have increased at a rate more than three times the national average.
Experts say home prices will soon start softening
The report from Redfin referenced above says that sale-price growth could slow down in the near future.
“Nationwide, 6.4% of home sellers cut their asking price during the four weeks ending May 26, on average, the highest share since November 2022. The median asking price dropped roughly $3,000 to $416,623 in the last week, the first decline in six months.”
Dana Anderson, Redfin
A similar report from Charles Schwab last week says the consistent rise in home prices looks to be slowing and prices are “easing from extremes.”
“As housing was the first sector to kick off the rolling recessions we’ve pointed out for more than two years, it now looks like it’s participating in the start of rolling recoveries.”
Charles Schwab report, May 28, 2024
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