Market Overview
Home Prices in Watertown, SD
The median home value in Watertown, SD is $318,757 as of mid-2026, according to Zillow's Home Value Index (ZHVI).That's up 3% compared to a year ago and up 0.4% from two years prior.
Compared to the U.S. national median of $410,000, homes in Watertown are priced22% below average. Watertown is part of the Watertown, SD metro area.
Over the past five years, Watertown home values have risen by approximately27.1%, reflecting strong long-term appreciation in this market.
Price History
Watertown Home Price Trend
City Comparison
Watertown vs. National Median
At $318,757, homes in Watertown cost 22% below the national median of $410,000. This makes Watertown a relatively affordable market for buyers seeking value.
Affordability
What Does It Cost to Buy in Watertown?
20% Down Payment
$63,751
on $318,757
Monthly P&I
$1,662/mo
30-yr @ 6.8%
Total Monthly Est.
~$2,111/mo
incl. taxes & insurance
Income Needed
$84,440
gross annual (30% rule)
10% Down Option
$31,876
+ PMI applies
Loan Amount (20% dn)
$255,006
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 Watertown, SD?
The median home value in Watertown is $318,757 as of mid-2026, according to Zillow's Home Value Index (ZHVI). That's up 3% year-over-year.
How much have home prices changed in Watertown?
Over the past year, home values in Watertown have increased by 3%. Over five years, prices have risen approximately 27.1%.
How much do I need to earn to buy a home in Watertown?
To comfortably afford the median home price of $318,757 with a 20% down payment ($63,751) at today's rates (6.8%), you'd need a gross annual income of approximately $84,440. This assumes keeping total housing costs at or below 30% of gross income.
How does Watertown compare to the national average home price?
The national median home value is approximately $410,000. At $318,757, homes in Watertown are 22% below the national average.
What metro area is Watertown part of?
Watertown is part of the Watertown, SD metropolitan area. Home prices and market conditions can vary across the broader metro region.