MONTHLY MARKET UPDATE

Greater Birmingham, Alabama

July 2026 Edition  |  Reporting May 2026 Closings

Greater Birmingham at a Glance — May 2026

Figures below are May 2026 residential closed sales for Jefferson + Shelby counties, pulled directly from Greater Alabama MLS (GALMLS) Market Statistics.

Metric	May 2026	vs. Apr 2026	vs. May 2025
Median Sales Price	$342,000	+1.8%	+4.3%
Average Sales Price	$436,475	+4.4%	+11.4%
Closed Sales	1,299	+3.7%	−1.2%
Median Days on Market	10 days	flat	1 slower
Average Days on Market	40 days	1 slower	6 slower
Sale-to-List Price Ratio	100.3%	−0.1 pt	+0.3 pt
New Listings	1,677	−8.4%	−10.3%
30-Yr Fixed Mortgage Rate	6.43%	−0.05%	−24 bps

Sources: Greater Alabama MLS (GALMLS) Market Statistics (Jefferson + Shelby, residential closed sales); Freddie Mac Primary Mortgage Market Survey (July 2, 2026).

What the Numbers Mean for You

For Buyers

May was the most competitive month of 2026 so far. The sell-through rate — the share of listings that actually sold — jumped from 68.5% in April to 77.5% in May, meaning more than three out of every four homes that came to market found a buyer. Combined with new listings falling 8.4% from April, the pool of available homes tightened right as demand strengthened.

The metro-wide sale-to-list ratio held above 100% for a third consecutive month (100.3% in May), meaning the typical home is still selling at or slightly above its asking price. Lowball offers on desirable listings are not landing. Come pre-approved and ready to move — the median home is going under contract in just 10 days.

Rates continue to help affordability at the margins: the 30-year fixed averaged 6.43% as of July 2, a seven-week low. Where’s the leverage? Homes with above-average days on market and communities with a lower entry point, like McCalla, still offer more room to negotiate. Contact us to build a search strategy for your target communities.

For Sellers

If you’ve been considering listing, May’s numbers make a strong case for now. The median sales price climbed to $342,000, up 1.8% from April and 4.3% from a year ago, while the sell-through rate jumped to 77.5% — meaning the large majority of well-positioned listings are finding buyers. New listings actually declined 8.4% from April, so sellers who do list face less competition from other sellers than they did just a month ago.

The sale-to-list ratio of 100.3% confirms buyers are paying at or above asking for the right homes. Average days on market ticked up slightly to 40 days, which reflects a wider range of outcomes — the best-prepared listings are still selling in the median 10 days, while overpriced or as-is homes drag the average higher.

Curious what your home would bring in today’s market? Visit our seller resources or reach out for a valuation specific to your community.

For Investors

Greater Birmingham’s fundamentals remain sound. UAB and the surrounding medical, banking, and insurance corridor anchor a stable employment base that keeps rental demand consistent across market cycles, even as sales-side metrics fluctuate month to month.

May’s tightening — fewer new listings, a higher sell-through rate, and prices at or above asking — suggests the easy-acquisition window from earlier this spring is narrowing. Investors should expect more competition on well-positioned properties across Jefferson and Shelby counties. Communities with newer inventory and a lower entry point, like McCalla, continue to offer the most accessible price-to-rent fundamentals in the metro.

Greater Birmingham by Community

A metro-wide median tells only part of the story — Greater Birmingham spans some of Alabama’s most affluent communities and some of its best values, often within a few miles of each other. Here’s how the most-watched submarkets are positioned this summer. Click any community for its full guide.

Submarket	Buyer Profile	Summer 2026 Read
Mountain Brook	Luxury, prestige, over-the-mountain	Alabama’s most affluent address continues to see limited inventory and deep demand, the strongest high-end market in the metro.
Vestavia Hills	Family, move-up, top schools	School reputation keeps demand sustained. As metro-wide sell-through rates climbed in May, well-priced homes here moved especially fast.
Homewood	Walkable urban-suburban, professionals	Tight inventory continues to define this submarket. Updated homes are drawing multiple-offer competition.
Hoover	Suburban, amenity-rich, broad range	The metro’s volume leader across a wide price band, benefiting most directly from May’s jump in sell-through rate.
McCalla	Value, newer construction, growth	Still the most accessible entry point with newer inventory. The best remaining leverage as the broader metro tightens.
Birmingham	Diverse, investment, revitalization	A wide range from downtown lofts to established neighborhoods, with targeted pockets continuing to draw investor interest.

A Note on the Metro-Wide Median

Greater Birmingham’s $342,000 metro median sits above the city of Birmingham’s own median because Jefferson and Shelby include premium communities like Mountain Brook, Vestavia Hills, and large stretches of Hoover. Your specific community’s numbers may differ substantially from the two-county figure — reach out for data specific to your target neighborhood.

What to Watch This Summer

1. Will the sell-through surge continue into June?

May’s jump from a 68.5% to 77.5% sell-through rate is the clearest signal in this report — demand strengthened meaningfully in a single month. Watch whether June sustains that pace or whether May pulled forward some of the seasonal summer demand. Early June contract activity will tell the story.

2. New listings pulling back

New listings fell 8.4% from April and 10.3% from a year ago. If that trend continues through summer, the combination of fewer new listings and a rising sell-through rate would keep pushing the market further toward sellers’ favor. This is the number most worth tracking over the next two reporting cycles.

3. Mortgage rates

The 30-year fixed eased to 6.43% as of July 2, a seven-week low per Freddie Mac. Continued easing would add more buyers to an already-tightening market. Watch the summer Fed meetings closely.

4. UAB and the Birmingham jobs engine

UAB and the surrounding medical, research, and banking corridor remain the metro’s economic backbone, underpinning housing demand across both counties regardless of month-to-month sales swings.

Frequently Asked Questions

What is the median home price in the Greater Birmingham area right now?

The median sales price across Jefferson and Shelby counties was $342,000 in May 2026, up 1.8% from April and 4.3% from a year earlier, based on Greater Alabama MLS residential closed sales. The average sale price was higher at $436,475, reflecting the metro’s wide range from value-priced communities to luxury markets like Mountain Brook.

Is Greater Birmingham a buyer’s or seller’s market in summer 2026?

Conditions moved further toward sellers in May 2026. The share of listings that sold jumped from 68.5% in April to 77.5% in May, new listings fell 8.4% month-over-month, and homes continued selling at or above asking (100.3% sale-to-list ratio). Buyers face real competition on well-priced, move-in-ready homes.

How fast are homes selling in Birmingham?

In May 2026, the median home in Jefferson and Shelby counties went under contract in just 10 days, unchanged from April. The average was longer at 40 days, reflecting that move-in-ready, well-priced homes sell almost immediately while homes needing work or priced above the comps take considerably longer.

Why did the Birmingham sell-through rate jump in May 2026?

The share of new listings that sold climbed from 68.5% in April to 77.5% in May — a nine-point jump in a single month. This coincided with new listings falling 8.4%, meaning fewer homes came to market just as buyer demand strengthened, a combination that typically signals tightening conditions and rising seller leverage.

Which Birmingham suburbs are most competitive for buyers?

Mountain Brook, Vestavia Hills, and Homewood are consistently the most competitive over-the-mountain submarkets, driven by school reputation and walkability. Hoover leads the metro in sales volume across a broad price range. Buyers seeking more leverage often look to communities like McCalla.

Are Birmingham home prices going up or down in 2026?

Greater Birmingham prices continued climbing through May 2026. The median reached $342,000, up 1.8% from April and 4.3% from a year earlier. With new listings pulling back and the sell-through rate rising sharply, the conditions are in place for continued price growth heading into summer.

Is now a good time to buy in Greater Birmingham?

For buyers who are financially ready, timing matters more than it did earlier this spring. May’s sell-through rate jumped to 77.5%, new listings fell, and homes continue selling at or above asking. Buyers who’ve been waiting on the sidelines should expect more competition than they saw in March or April.

How are mortgage rates affecting the Birmingham market?

The 30-year fixed mortgage rate averaged 6.43% as of July 2, 2026 — a seven-week low and 24 basis points below a year ago, according to Freddie Mac. Improving affordability is one likely factor behind May’s jump in sell-through rate, as more buyers were able to compete for available homes.

About the data: Greater Birmingham figures in this report cover Jefferson and Shelby counties and are sourced from Greater Alabama MLS (GALMLS) Market Statistics, reflecting residential closed sales for May 2026, with April 2026 and May 2025 comparison data pulled from the same reporting tool on July 3, 2026. Real estate data is subject to revision as late filings post. For numbers specific to your community and a personalized analysis, contact The Williams Group directly.