Are you thinking about buying or selling a home in Pelham, Alabama? Understanding current market trends is key to making confident, informed real estate decisions. As a trusted Pelham, AL real estate agent, I’m breaking down the latest market data so you can clearly see what’s happening and how it impacts you.
Using December 2025 MLS data, here’s what buyers and sellers need to know as we head into 2026.
Pelham Real Estate Market Overview
The Pelham housing market remains strong and competitive entering the new year. Rising prices, tightening inventory, and homes selling close to (or above) asking price point to a market that continues to favor well-prepared buyers and sellers.
Median Home Prices in Pelham Continue to Rise
The median home sale price in Pelham, AL reached $377,960 in December 2025, reflecting an 8.3% increase compared to the prior period. This steady appreciation highlights Pelham’s continued desirability due to its location, schools, and quality of life.
What this means:
- Sellers are seeing solid equity growth and strong pricing power.
- Buyers should be aware that prices are rising, but Pelham still offers excellent value compared to many nearby Birmingham-area communities.
Buying sooner rather than later may help buyers lock in value before prices climb further.
Home Inventory Levels in Pelham, AL
Pelham currently has 140 active listings, a 2.78% decrease from recent months, signaling a tightening housing supply.
Inventory trend:
- September 2025: 186 active listings
- October 2025: 155 active listings
- November 2025: 144 active listings
- December 2025: 140 active listings
For buyers: Fewer listings mean competition can be strong. Working with a local Pelham real estate agent ensures you hear about new homes quickly and submit competitive offers.
For sellers: Lower inventory creates less competition, often leading to faster sales and stronger offers.
How Long Are Homes Staying on the Market?
The average days on market is 113 days, a slight 0.88% decrease. While this reflects a steady pace overall, it’s important to note that well-priced, move-in-ready homes in desirable Pelham neighborhoods often sell much faster.
Homes that are professionally marketed, properly priced, and well-presented frequently receive strong interest within the first few weeks of listing.
Price-to-List Ratio Shows Seller Strength
The average list-to-sale price ratio reached 100% in December 2025, increasing by 1.01%. This means homes are selling at, or very close to, their asking prices, and some are selling above list price.
This reflects:
- Strong buyer demand
- Accurate pricing strategies
- Continued confidence in the Pelham housing market
Price Per Square Foot Trends
The median sale price per square foot is $177, representing a 6.63% increase.
Recent trends:
- September 2025: $182/sq ft
- October 2025: $170/sq ft
- November 2025: $166/sq ft
- December 2025: $177/sq ft
Price per square foot helps buyers and sellers understand true value beyond total price and confirms consistent appreciation across Pelham homes.
Recent Home Sales in Pelham, AL
Looking at real transactions gives helpful insight into current market dynamics. Recent January 2026 sales include:
- 3438 Indian Lake Drive – Listed and sold for $489,000
- 1849 Hamilton Road – Listed and sold for $439,999
- 373 Huntley Ridge Bend – Listed at $350,900, sold for $369,370 (above asking)
- 1113 Weybridge Circle – Listed at $340,000, sold for $321,500
- 2407 Chandabrook Drive – Listed at $345,000, sold for $310,000
These examples show that pricing and marketing strategy matter. Some homes attract multiple offers, while others require negotiation, highlighting the importance of working with a knowledgeable local agent.
What These Pelham Market Trends Mean for Sellers
- Pricing is critical: Homes priced correctly based on current data attract stronger offers.
- Presentation matters: Professional photos, staging, and highlighting Pelham’s lifestyle advantages help homes stand out.
- Timing is favorable: Rising prices and declining inventory create excellent selling conditions.
- Local expertise is key: Neighborhood-level insight can significantly impact results.
What These Trends Mean for Buyers in Pelham
- Act decisively: Limited inventory means hesitation can cost you the right home.
- Get pre-approved: Sellers favor buyers with solid financing in competitive situations.
- Prepare for competition: Multiple-offer scenarios are common in popular price ranges.
- Think long-term: Pelham continues to offer strong appreciation, quality schools, and proximity to Birmingham employment centers.
- Stay flexible: Expanding criteria slightly can open up more opportunities.
Why Pelham, AL is a Smart Real Estate Investment
Pelham’s strong market is supported by long-term fundamentals, including:
- Highly regarded Pelham City Schools and Shelby County Schools
- Convenient access to Birmingham via I-65 and Highway 31
- Oak Mountain State Park and abundant outdoor recreation
- Growing retail and dining along Highway 31
- Safe, family-friendly neighborhoods
- Ongoing economic development and job growth
These factors continue to drive demand and support rising home values.
Your Next Steps in the Pelham Real Estate Market
Whether you’re selling your Pelham home or searching for the right property to buy, having an experienced Pelham, AL real estate agent makes all the difference.
I provide:
- Hyperlocal Pelham neighborhood expertise
- Data-driven pricing strategies
- Professional marketing and off-market opportunities
- Skilled negotiation
- Personalized market analysis
Ready to Make Your Move in Pelham?
Don’t navigate the Pelham real estate market alone. Contact me today for a personalized consultation about buying or selling a home in Pelham, Alabama. Together, we’ll create a smart strategy aligned with today’s market and your goals.
Market data sourced from December 2025 MLS statistics for Pelham, AL. Real estate conditions can change quickly. Contact a Pelham real estate professional for the most up-to-date information.
Curious About Your Home’s Value?
If you’re wondering what your home might sell for in today’s Pelham’s market, or if you simply want to talk through a potential timeline, I’m always happy to chat.
If you’re new to the Greater Birmingham area and have any questions, please feel free to reach out to Dianna Howell with The Howell Group: 205-568-5435 or dianna.howell@kw.com
Check out how much your home is worth here ➡️ https://diannahowellrealtor.com/home-valuation/
🔑🏡 Download my free Home Buyer checklist here:
https://diannahowellrealtor.com/alabama-home-buyer-checklist/
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Sincerely,
Dianna Howell Realtor, top real estate agent in the Pelham, Alabama
