The Birmingham, AL metro area housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has risen to $290,000, marking a 6.4% increase year-over-year, indicating a robust appreciation in home values. Similarly, the Median List Price has increased by 4.6% to $292,750, reflecting continued demand in the market.

Despite the rise in prices, the number of Homes Sold has decreased significantly by 14.1% year-over-year, with 887 Homes Sold in February 2025. This decline in sales volume suggests potential affordability challenges or a shift in buyer sentiment. Pending Sales have also seen a slight decrease of 1.7%, totaling 1,407, which may indicate a cooling in buyer activity.

New Listings have decreased by 6.2% year-over-year, with 1,310 new homes entering the market. However, inventory levels have increased by 3.5% to 3,897 homes, contributing to a higher Months of Supply, which has surged by 70% to 4.4 months. This increase in supply could provide more options for buyers, potentially easing some of the upward pressure on prices.

The median Price Per Square Foot has risen by 3.0% to $156.60, while the Median List Price per square foot has increased by 4.2% to $161.50. These figures suggest that while prices are rising, the rate of increase per square foot is more moderate compared to overall price growth.

Homes are spending a median of 76 days on the market, a slight increase of 3.0% year-over-year, indicating that properties are taking slightly longer to sell. The average sale to list ratio remains stable at 97.7%, with no significant change from the previous year. However, the percentage of Homes Sold above list price has decreased by 2.8% to 18.6%, suggesting that competitive bidding may be less intense than in previous periods.

Price Drops have increased by 2.6% to 24.2%, indicating that sellers may be adjusting their expectations in response to market conditions. Additionally, the percentage of homes going off the market within two weeks has decreased by 8.6% to 31.6%, further highlighting a potential slowdown in buyer urgency.

Overall, the Birmingham housing market in February 2025 is characterized by rising prices and increased inventory, coupled with a decline in sales activity and a longer time on the market. These trends suggest a shift towards a more balanced market, where buyers may have more negotiating power than in previous years.