Local experts break down the 2026 Birmingham housing market

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As Birmingham heads into 2026, the local housing market is shaping up to be dynamic and full of opportunities for buyers and sellers alike. From shifting interest rates to neighborhoods seeing both growth and slowdowns, there’s plenty to watch in the months ahead.

We sat down with local real estate agents Lauren Branch and Rebecca Stump to learn more about the holiday housing market and what we can expect heading in 2026.

Homebuying for the holidays

Both Rebecca and Lauren spend their days guiding buyers through Birmingham’s neighborhoods, but they agreed that they can’t walk through a showing this time of year without doing a little mental holiday staging.

“When I’m showing homes, no matter what time of year, I always wonder where their Christmas tree will go—especially if they have tall ceilings or a bay window. I sometimes get jealous when a home has the perfect space for a big tree.”

Rebecca Stump, Real Estate Agent, Ray & Poynor

Whether you deck the halls right after Halloween or wait until Christmas Eve, picturing yourself celebrating holidays in a space is a real part of choosing the right home.

Lauren sees the same thing with clients—everyone wants a house that feels right, not just checks boxes.

“One thing on all of my clients’ wish lists is a fireplace. And who doesn’t love cozying up to a warm fireplace decorated with garland and stockings for the holidays? When looking for a home, it’s important that you can see yourself celebrating holidays and special occasions—entertaining family and enjoying those special moments.”

Lauren Branch, Real Estate Agent, Ray & Poynor

What Birmingham’s market is telling us right now

Before we flip the calendar to a new year, let’s take a look at the state of the local housing market. This fall, Birmingham’s real estate landscape has seen a little bit of everything. Several communities across the metro experienced notable increases in median sales prices and more homes sold—clear signs of strong demand.

However, some pockets of the metro saw the opposite: double-digit dips in sales or pricing when compared to late summer, highlighting how varied the market continues to be across different neighborhoods.

This mix of highs and lows is setting the stage for an interesting start to 2026.

What to expect in 2026

Now for the part everyone wants to know: where is the market heading?

As we prepare to start the new year, both agents say Birmingham’s market is gearing up for a lively stretch (especially when Spring rolls around.)

“The Spring in Birmingham tends to be a really active time. This year it’s going to be very busy for both buyers and sellers.”

Lauren Branch, Real Estate Agent, Ray & Poynor

Rebecca is keeping an eye on another trend—one that started way back in 2020.

“We’re now six years out from COVID. People who locked in extremely low interest rates may now be at a point where they need more space, a bigger house or a different location.”

Rebecca Stump, Real Estate Agent, Ray & Poynor

In other words, the “I’ll never move again with this interest rate!” era may be giving way to “Actually… we want a yard.”

Those shifts could mean a Spring market with more inventory, more movement across neighborhoods and more buyers ready to make big decisions after years of staying put.

In short? The 2026 market promises a lively mix of new listings, competitive pockets and plenty of opportunity for both sides.

No matter what the market brings next year, Ray & Poynor is here to help.

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