Birmingham’s Top 10 Luxury Home Neighborhoods

Birmingham Luxury Home Trends

Is the top end of the real estate market any indication of how the market is doing? Today we’re going to take a look at the trend in luxury home sales in the Birmingham market shortly before the real estate recession up until now and also which Birmingham neighborhoods these sales are occurring in.

Some might argue that the recession really did not affect the top end of the market, and they may be right. Of course, every area is different, but the overall Birmingham real estate market has been relatively stable over the years. As you can see in the chart from 2005 to present, it appears that from mid to late 2008 until late 2013 there was some reduction in home sales over $3,000,000. You can also see some reduction in sales in the lower price ranges as well.

Sales over 750K since 2005

In December of 2013 we start to see some activity in home sales over $3.5 million and then in November of 2015 we see one of the highest sales at $4.8 million in this 12 year period, included in the graph.

What are the top luxury home neighborhoods in Birmingham?

Generally speaking, the town of Mountain Brook typically has the highest concentration of upper priced homes within the Birmingham metro area, in addition to the state. Within Mountain Brook, when we look at homes that sold over $750,000, we find that the average price is around $1.1 million dollars.

If we look at specific neighborhoods around the area and consider the number of sales as well as the average sale price we get the following, in no particular order:

  • Liberty Park
  • Greystone
  • Ross Bridge
  • Redmont
  • Hollywood
  • The Preserve
  • Edgewood
  • Highland Lakes
  • Indian Springs
  • Shoal Creek

Luxury home sales volume vs avg sold price


These areas have historically shown good demand over the years and they continue to do so.

3 Things to consider when buying a luxury home

1) Don’t forgo the appraisal- I know this sounds crazy but I’ve noticed that a large number of luxury homes are purchased for cash. When traditional financing is not used buyers may decide to forgo the appraisal but I would advise against that and even cash buyers should get an appraisal. Since these types of sales do not occur very frequently it might be difficult for an agent or a buyer to ballpark the value but since a home is most likely the largest investment most people will make it is important to get an accurate value estimate from an experienced and qualified appraiser.

2) Get to know the different neighborhoods- Each neighborhood has their own set of features and amenities. It’s important to know what each has to offer and to make sure the features match up with what is important to you. Neighborhood amenities can sometimes add to the desirability of a neighborhood which can help increase their value. When getting an appraisal make sure the appraiser knows about all the amenities the neighborhood has.

3) Make sure your home is not the most expensive one in the neighborhood- It’s important to keep in mind that if you are in the market for a luxury home it’s better to buy at the lower to middle of the price range rather than buying the most expensive home in the neighborhood. If you buy at the top end then the lower priced homes will bring down your home’s value. If you are at the lower end, the upper priced homes will typically bring your home’s value up.


Are you in the market for a luxury home in the Birmingham area? If so, I hope this information has been helpful to you.

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  1. Love the graphs Tom. Do you know what the highest sale ever in Birmingham has been? I didn’t realize you had sales near $5M. That’s getting up there. Sacramento hasn’t broken 5M yet for a residential property (at least a sale on MLS).

    • Thanks, Ryan. That is actually near the top end of sales prices that we’ve had around the Birmingham area. I’m pretty sure there are higher priced homes but they haven’t sold.

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