Watertown, SD metro area Housing Market

Cold Market

Comprehensive housing market data for the Watertown, SD metro area metro area. Track home prices, inventory, days on market, and competition — updated monthly for real estate investors.

Data period: March 2026

Median Sale Price

$275K

1.5% YoY

Days on Market

104 days

82.5% YoY

Active Inventory

112

6.7% YoY

Homes Sold

21

16.7% YoY

Cold Market

Inventory is high and homes are sitting longer — a buyer's market.

Watertown, SD metro area Market Summary

The Watertown, SD metro area housing market is cooling down. As of March 2026, the median home sale price is $275K, up 1.5% year-over-year. Homes are spending a median of 104 days on the market, 82.5% longer than a year ago.

There are 112 homes for sale — 6.7% more than last year. With 5.3 months of supply, this is a balanced market. 48 new listings were added during this period, up 50.0% year-over-year.

Homes are selling for 97.1% of their list price on average, suggesting room for negotiation. 9.5% of homes sell above their asking price. 16.1% of listings have had a price drop.

Market Opportunity Score

Based on current market conditions

73

Contributing Factors

Months of Supply 5.3
Days on Market 104
Price Drops 16.1%
Sale-to-List Ratio 97.1%
Market Temperature Cold

How This Market Compares

vs. National Median

Median Price (National: $437K) 37.0%
Days on Market (National: 55) 89.1%
Inventory (National: 1,314,690) 100.0%

vs. South Dakota Median

Median Price (South Dakota: $318K) 13.6%
Days on Market (South Dakota: 85) 22.4%

Investor Takeaway

The cooling market may present buying opportunities with less competition and more negotiating leverage. High inventory relative to sales pace means buyers have options and sellers may be flexible on price. Prices are 37% below the national median, which could indicate stronger cash flow potential.

Watertown, SD metro area Market Trends

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Detailed Market Metrics

Median List Price

$305K

Price per Sq Ft

$139

Sale-to-List Ratio

97.1%

Months of Supply

5.3

Sold Above List

9.5%

Price Drops

16.1%

New Listings

48

50.0% YoY

Pending Sales

32

Off Market in 2 Weeks

40.6%

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Housing market data provided by Redfin, a national real estate brokerage. Not financial advice. Always consult a qualified professional before making investment decisions.