Birmingham real estate trends now point to a positive spring
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After a somewhat slow start to the year, the local real estate market looks to carry some decent momentum into spring, with mortgage rates expecting ease a bit and inventory remaining steady.
Here’s what those in the know think about the real estate market in the Birmingham metro moving forward this spring:
A look at the local real estate market now
Here’s a snapshot of the Birmingham metro real estate market:
| City | Median Home Price February (% change from January) | New Listings in February (% change from January) | Homes Sold in February (% change from January) | Average Days on the Market (% change from January) |
| Birmingham | 246,000 (+17.1%) | 352 (-4.1%) | 187 (+19.1%) | 106 (1.9%) |
| Alabaster | $322,000 (-+1.6%) | 38 (0%) | 30 (+76.5%) | 94 (+1.1%) |
| Bessemer | $235,000 (-14.6%) | 69 (-2.5%) | 33 (+6.4%) | 107 (+2.7%) |
| Homewood | $492,000 (+21.7%) | 32 (+39.1%) | 22 (+37.7%) | 103 (-8%) |
| Hoover | $454,500 (-4.9%) | 148 (-14%) | 96 (+17%) | 78 (-1.3%) |
| Mountain Brook | $862,500 (-0.5%) | 30 (+76.5%) | 22 (+214%) | 59 (-37.1%) |
| Pelham | $365,000 (+25.3%) | 41 (+12.9%) | 23 (-28%) | 131 (+4.8%) |
| Trussville | $434,000 (-10.8%) | 71 (-8%) | 39 (+14.1%) | 116 (+2.3%) |
| Vestavia Hills | $565,000 (+0.5%) | 55 (+24.6%) | 45 (+73%) | 91 (-13.3%) |
Source: Birmingham Association of Realtors
What we might see moving forward
RealtySouth CEO Richard Grimes provided some insight on the market moving forward, given where it has been trending in recent months. He said there are several trends he is watching closely that give him confidence about the direction of our housing market.
“Consumer confidence is always influenced by a wide range of factors—many of which people may not consciously recognize. Political dynamics, global events, economic news,and everyday financial concerns all shape how buyers and sellers approach major decisions like purchasing a home.
Despite those broader influences, housing remains one of the most stable long-term investments available to families.”
Richard Grimes, CEO, RealtySouth
Even with higher mortgage rates over the past two years, Grimes said demand for housing in the area has remained steady.
“One reason is that our local economy has been relatively stable compared with many parts of the country. The Birmingham Metropolitan Service Area continues to benefit from strong healthcare, education, and manufacturing sectors, which support steady job growth and long-term housing demand.”
Richard Grimes, CEO, RealtySouth
Looking ahead over the next several months, Grimes said we should expect to see mortgage rates ease slightly while inventory remains moderately tight.
He added that more homeowners are considering listing their properties this spring as they adjust to the “new normal” of mortgage rates. he said even a modest increase in listings can create more opportunities for buyers while still supporting healthy home values for sellers.
Based on current trends, he said he anticipates roughly 4% more homes being sold across the state compared to 2025, reflecting steady demand and improving market balance.
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