The Alabama Center for Real Estate recently released their comprehensive report on the Birmingham real estate market through June 2025. We’ve analyzed the data to bring you the most important insights!
Home sales volume increased nearly 14% compared to last year, though this remains approximately 30% below the market peak we saw in June 2021.
The median sales price reached $325,000, representing a modest 2% increase from 2024, but a substantial 11% growth compared to the five-year average. Meanwhile, the average sales price held relatively steady at $385,000, up just 0.5% year-over-year, though still 12% higher than the five-year average.
Days on market (the average time to secure a contract) increased significantly to 35 days, up 25% from last year and a remarkable 64% above the five-year average. This dramatic shift primarily reflects the exceptionally fast-paced market we experienced during 2020-2023.
Available housing inventory decreased by over 16% compared to last year, while remaining consistent with the five-year average. At the current sales pace, there’s approximately 2.9 months of housing supply available, representing a 26% decrease from last year, but a 10% increase compared to the five-year average.
The Birmingham market is clearly in transition. We’re seeing declining inventory alongside increasing days on market, yet prices remain relatively stable. This suggests sellers are maintaining their price expectations rather than accepting lower offers.
If you own property in the Birmingham metro area and want to avoid the uncertainties and complications of a traditional listing in this changing market, contact us at 205-390-1050 or visit our website at www.CahabaHomeBuyers.com. We purchase homes throughout Birmingham and surrounding communities, and we’d be delighted to make an offer on yours!