Birmingham, Alabama, August 6, 2025
News Summary
Birmingham, Alabama, is witnessing a notable increase in homes priced around $1 million, with 30 listings available. This trend mirrors the rising housing prices across the U.S. Mountain Brook, a nearby suburb, has average home prices ranging from $831,000 to $874,000, starkly contrasting with Alabama’s median home value of $223,000. The market is gradually improving, with predictions for a moderate rise in housing prices in the coming year, driven by changing buyer perceptions and mortgage rate dynamics.
Birmingham Sees Surge in $1 Million Homes as Housing Market Evolves
Birmingham, Alabama is experiencing a notable increase in the availability of homes priced around $1 million, reflecting a broader trend of rising housing prices across the United States. There are currently 30 homes listed at approximately $1 million in the Birmingham area, according to recent data compiled by Stacker using information from Redfin Real Estate.
Mountain Brook, a suburb just outside Birmingham, boasts the wealthiest ZIP codes in Alabama, with average home prices ranging from $831,000 to $874,000. This figure significantly contrasts with the statewide median home value in Alabama of about $223,000, which ranks as the eighth cheapest in the country. The median sales price for homes in Birmingham stands at $183,000, revealing the disparity between luxury and typical residential properties.
Real estate expert Jonathan Huffer notes that the perception of a $1 million price point has shifted nationally, no longer seen as an outlier, but increasingly common due to rising home prices, particularly in coastal regions. In Birmingham, the largest home currently on the market is priced at $950,000 and spans 6,386 square feet, while the smallest is listed for $929,900 at just 2,252 square feet.
Current Market Conditions
The overall housing market in Birmingham shows signs of gradual improvement. In January 2025, total residential sales reached 786 units, marking a slight increase compared to the previous year. The average sales price was reported at $342,328. The inventory levels, though better than historic lows, remain below the peak levels observed in 2016, with an inventory-to-sales ratio of 4.2 months, indicating a slight seller’s market.
Mortgage rates, now hovering around 6.5%, are also contributing to housing market dynamics. Looking forward, it is predicted that Birmingham’s housing prices will experience a moderate increase, estimated at 0.3% over the next year.
Notable Properties on the Market
Among the homes listed are several noteworthy properties:
- 2600 Arlington Ave S #83, Birmingham
- 2700 Arlington Ave #37, Birmingham
- 4223 Old Brook Ln, Mountain Brook
- 212 Olmsted St, Birmingham
- 164 Bridge Dr, Birmingham
- 704 Saint Andrews Ln, Hoover
- 6006 Rosemont Rd, Birmingham
- 4137 Crescent Rd, Birmingham
- 1557 Parkside Ct, Homewood
- 4623 Battery Ln, Mountain Brook
- 2267 Butler Springs Ln, Hoover
- 1061 Greystone Cove Dr, Birmingham
- 2100 Swann Ln, Hoover
- 4977 Eagle Crest Dr, Birmingham
- 6031 Olivewood Dr, Hoover
- 101 N Lake Dr, Hoover
- 632 Springbank Ter, Hoover
- 3508 Brookwood Rd, Mountain Brook
- 1902 Wellington Rd, Homewood
- 3320 Southbend Cir, Vestavia Hills
- 4987 Spring Rock Rd, Mountain Brook
- 2000 Regency Way, Birmingham
- 716 Crest Ln, Homewood
- 2600 Arlington Ave #80, Birmingham
- 3558 Westbury Rd, Mountain Brook
- 1217 23rd St S Unit C1, Birmingham
- 2233 Farley Rd, Hoover
- 218 Lakeshore Dr, Homewood
- 3004 Highland Village Rdg, Birmingham
- 6036 Olivewood Dr, Hoover
A Complex Market
Birmingham’s housing market reflects a complex interplay of local and national trends. The presence of a rising number of million-dollar homes highlights both demand and evolving price perceptions in the housing sector. Though the market offers a range of options at various price points, it remains characterized by certain disparities between luxury and typical homes, underpinned by the broader economic context affecting housing across the nation.
FAQ
What is the current median home price in Birmingham?
The median sales price of a home in Birmingham is approximately $183,000.
How many homes are currently listed around $1 million in the Birmingham area?
There are currently 30 homes listed at around $1 million in the Birmingham area.
What is the average home price in Mountain Brook?
The average home price in Mountain Brook ranges from $831,000 to $874,000.
How do Birmingham’s home prices compare to the national average?
Birmingham’s median home price of $183,000 is significantly lower than the national median home price of $396,900.
What is the forecast for Birmingham’s housing prices for the upcoming year?
The forecast suggests Birmingham housing prices will see a moderate increase of about 0.3% over the next year.
Key Features of Birmingham’s Housing Market
| Feature | Details |
|---|---|
| Current Number of $1 Million Homes | 30 |
| Average Home Price in Mountain Brook | $831,000 – $874,000 |
| Median Home Price in Birmingham | $183,000 |
| National Median Home Price | $396,900 |
| Forecasted Price Increase | 0.3% |
| Average Sales Price in January 2025 | $342,328 |
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Additional Resources
- AL.com: $1 Million Homes on the Market in Birmingham
- Nora Dada Real Estate: Birmingham AL Real Estate
- Bham Now: Summer Housing Market Tips for Birmingham
- WBRC: Birmingham Metro’s Housing Market Update
- WVTM 13: Impact of Tariffs on Birmingham Housing Market
- Wikipedia: Housing in the United States
- Google Search: Birmingham Housing Market
- Encyclopedia Britannica: Real Estate
- Realtor.com: Affordable Housing Markets in Birmingham
- Bham Now: Birmingham Home Prices Keep Going Up
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
