Less Inventory, Higher Prices: Market Shifts in Birmingham Neighborhoods

Birmingham Real Estate Market Update: July vs. August

The Birmingham real estate market has been moving at a brisk pace all year, but recent numbers reveal some important shifts. While sales volume dipped across several key neighborhoods in August, prices remained steady—or even climbed—depending on location. Let’s take a closer look at how the market performed in Mountain Brook, Vestavia Hills, Hoover, and Homewood, and how these local trends tie into the bigger picture across Birmingham and the state of Alabama.

Mountain Brook

• Homes Sold: 36 in July → 27 in August

• Average Sold Price: $1.13M → $1.14M

• Average Days on Market: 20 → 31

Mountain Brook saw fewer transactions in August, with homes taking longer to sell. Still, the average sold price ticked up slightly, signaling that demand for this luxury market remains strong—even if buyers are taking their time.

Vestavia Hills

• Homes Sold: 77 in July → 48 in August

• Average Sold Price: $636K → $619K

• Average Days on Market: 21 → 40

Vestavia Hills experienced one of the most noticeable slowdowns. Homes sat on the market nearly twice as long, and average prices dipped modestly. This suggests that buyers are becoming more selective, creating opportunities for those looking to negotiate.

Hoover

• Homes Sold: 253 in July → 177 in August

• Average Sold Price: $539K → $550K

• Average Days on Market: 26 → 29

Hoover’s sales volume declined, but prices rose slightly. This indicates that while overall activity has cooled, demand remains steady for well-priced properties in desirable areas.

Homewood

• Homes Sold: 38 in July → 27 in August

• Average Sold Price: $596K → $735K

• Average Days on Market: 29 → 21

Homewood stood out from the rest of the pack. Despite fewer sales, homes sold faster in August and at a significantly higher price point. This reflects continued demand in one of Birmingham’s most sought-after neighborhoods.

The Bigger Picture: Birmingham Metro & Alabama

Looking beyond individual neighborhoods, the broader Birmingham metro and state-level data paint a similar story:

• Birmingham Metro (Redfin, August 2025):

  • Median sale price: $191K (up 6.3% year-over-year)

  • Homes sold: down nearly 19% from last year

  • Average days on market: 61 (up 13 days from last year)

• Alabama Statewide (Alabama Realtors Association):

  • Median sales price: ~$300K (up 4.8% year-over-year)

  • Closed sales: down 1.6% year-over-year

  • Average days on market: 57 (up 6 days from last year)

• Inventory Rising: Active listings in Birmingham increased ~11.6% compared to last year, giving buyers more options than they’ve had in recent memory.

Key Takeaways

1. Sales Volume Down – Every neighborhood tracked fewer sales in August compared to July, reflecting a broader slowdown across the metro area.

2. Prices Holding or Climbing – Even as activity eased, average home prices stayed stable or rose, particularly in Homewood and Hoover.

3. Days on Market Increasing – Except in Homewood, homes are taking longer to sell, signaling a shift toward a more balanced market.

4. Neighborhood Trends Matter – Mountain Brook’s luxury resilience, Vestavia’s cooling, Hoover’s steady rise, and Homewood’s surge show that “location, location, location” isn’t just a saying—it’s the reality of Birmingham real estate.

What This Means for You

• For Sellers: Proper pricing and presentation are more important than ever. Homes that are well-positioned in the market are still attracting strong offers, but buyers are less willing to overpay.

• For Buyers: Patience is paying off. With more inventory and fewer bidding wars, now may be the time to secure a home with terms that fit your needs.

The Birmingham housing market is showing signs of balance after years of fast-paced growth. While sales numbers slowed in August, values remain strong—especially in premium neighborhoods like Homewood. Whether you’re thinking of buying, selling, or simply keeping an eye on your investment, understanding these month-to-month shifts can help you make smarter decisions.

At Franklins of Bham | LAH Sotheby’s International Realty, we specialize in helping our clients navigate every chapter of the market with confidence. If you’d like to discuss what these trends mean for your home or future plans, we’d love to connect.