Birmingham Real Estate Market Update 2025: Prices Up 6.7% as Sales Slow
Birmingham Real Estate Market Report: 2024 vs. 2025 (Latest Data)
Overview at a Glance
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Monthly Units Sold | 3,662 | 3,098 | ↓ 15% |
| Monthly Sales Volume | $1,157M | $1,078M | ↓ 6.76% |
| YTD Units Sold | 28,220 | 27,415 | ↓ 2.85% |
| YTD Sales Volume | $8,898M | $9,222M | ↑ 3.64% |
| Days on Market | 58 days | 63 days | ↑ 8.62% |
| Average Price | $315,588 | $336,758 | ↑ 6.71% |
What These Numbers Mean
- Higher prices, fewer closings.
Though fewer homes have sold this year, average prices are up by 6.7%, helping drive YTD total sales dollars up 3.6%. - Longer marketing times.
Homes are taking longer to sell—now averaging 63 days on market versus 58 last year. - Month vs. Year-to-Date trends.
The dip in monthly activity (-15%) doesn’t fully reflect the broader YTD strength (+3.6% sales volume), illustrating how short-term metrics can differ from longer-term trends.
Local Market Context
- Mortgage Rates: As of early September 2025, the 30-year fixed mortgage rate hovers around 6.5%. Tightening affordability may be slowing home turnover.
- Seasonal Variability: ACRE’s July 2025 report shows Birmingham-area sales up 6% YoY, highlighting the importance of timing and market cycles.
Frequently Asked Questions (FAQ)
Q: What’s the average home price in Birmingham, AL, right now?
A: It’s approximately $336,758, based on the latest data snapshot.
Q: Are homes selling faster or slower this year?
A: Slower. The average Days on Market has increased by ~8.6%, now at 63 days.
Q: Should I sell or wait?
A: While I can’t make that judgment for you, if you’re pricing competitively and show well, the higher average prices suggest your listing can still perform. Let’s chat specifics.
Ready to Act?
If you’re curious about your own home’s value or want a custom market forecast, contact J.L. Miller Realty for a free, no-obligation Birmingham home valuation.
