Market Overview
Home Prices in Castlewood, SD
The median home value in Castlewood, SD is $470,006 as of mid-2026, according to Zillow's Home Value Index (ZHVI).That's down 2.8% compared to a year ago and down 18.6% from two years prior.
Compared to the U.S. national median of $410,000, homes in Castlewood are priced15% above average. Castlewood is part of the Watertown, SD metro area.
Over the past five years, Castlewood home values have risen by approximately2.7%, reflecting modest growth in this market.
Price History
Castlewood Home Price Trend
City Comparison
Castlewood vs. National Median
At $470,006, homes in Castlewood cost 15% above the national median of $410,000. Buyers in Castlewood should expect to pay a premium compared to most U.S. markets.
Affordability
What Does It Cost to Buy in Castlewood?
20% Down Payment
$94,001
on $470,006
Monthly P&I
$2,451/mo
30-yr @ 6.8%
Total Monthly Est.
~$3,113/mo
incl. taxes & insurance
Income Needed
$124,520
gross annual (30% rule)
10% Down Option
$47,001
+ PMI applies
Loan Amount (20% dn)
$376,005
at current rates
Estimates assume a 30-year fixed mortgage at 6.8%. Monthly total includes estimated property taxes and homeowner's insurance. Actual costs vary.
FAQ
Frequently Asked Questions
What is the average home price in Castlewood, SD?
The median home value in Castlewood is $470,006 as of mid-2026, according to Zillow's Home Value Index (ZHVI). That's down 2.8% year-over-year.
How much have home prices changed in Castlewood?
Over the past year, home values in Castlewood have decreased by 2.8%. Over five years, prices have risen approximately 2.7%.
How much do I need to earn to buy a home in Castlewood?
To comfortably afford the median home price of $470,006 with a 20% down payment ($94,001) at today's rates (6.8%), you'd need a gross annual income of approximately $124,520. This assumes keeping total housing costs at or below 30% of gross income.
How does Castlewood compare to the national average home price?
The national median home value is approximately $410,000. At $470,006, homes in Castlewood are 15% above the national average.
What metro area is Castlewood part of?
Castlewood is part of the Watertown, SD metropolitan area. Home prices and market conditions can vary across the broader metro region.