Watertown, WI Housing Market

Market Overview

Watertown, WI is a moderately strong housing market according to its PropertyIQ Score of 82 out of 100. The score is driven by 12-month home value momentum of 9.95%, a median days on market of 53 days, and a 17.0% share of listings with a price cut. The median home value of $372,104 is above the state average of $339,699, and the rent index of $1,364 is well above Wisconsin’s $1,045. Local unemployment is 3.3%, matching the state average, and median household income is $80,604, above the state figure of $75,670.

The market’s momentum is not uniform, however. While the 12-month home value momentum is strong, the 3-month momentum is just 0.04%, and the year-over-year change in median home value is $-3, essentially flat. This suggests that Watertown’s earlier price growth has cooled and the market is now more stable than rapidly appreciating.

Key Trends

One trend is the divergence between longer-term and short-term price movement. The 12-month home value momentum of 9.95% is a top score driver, while the 3-month momentum of 0.04% and year-over-year change of $-3 indicate appreciation has plateaued. Homes are still selling at a moderate pace, with a median of 53 days on market, and 17.0% of listings have had a price cut, reinforcing the picture of a balanced market rather than a seller-heavy one.

A second trend is elevated housing costs relative to the state. Watertown’s median home value of $372,104 is about 9.5% above the state average, and its rent index of $1,364 is roughly 30.5% above the state’s $1,045. This suggests both ownership and rental costs are higher than typical for Wisconsin, which may support property values but also creates affordability considerations.

Economic fundamentals remain supportive. Unemployment is 3.3%, equal to the state average, and median household income of $80,604 exceeds the state’s $75,670. Population growth data is not available in the provided metrics, so demographic-driven demand cannot be fully evaluated.

Who Is This Market For

This market may suit first-time buyers and move-up buyers who have stable incomes, given the low unemployment rate and above-state median household income of $80,604. However, the median home value of $372,104 is above the state average of $339,699, so entry-level buyers may need to target homes below the median or have stronger purchasing power.

The rental profile may be attractive to investors. The rent index of $1,364 is well above the state average of $1,045, while the median home value is only about 9.5% higher than the state average. That combination suggests rental income may be relatively stronger compared with purchase prices in Watertown than in the state overall. The 53-day median time on market and 17.0% share of listings with a price cut also indicate that buyers and investors may have some room to negotiate.

Outlook

The data supports a stable near-term outlook. The 12-month home value momentum of 9.95% and a low unemployment rate of 3.3% provide underlying demand, but the 3-month momentum of 0.04%, the year-over-year change of $-3, and the 17.0% share of listings with price cuts point to limited short-term price growth. With 216 homes for sale and a median of 53 days on market, conditions appear balanced. The rent index above the state average may continue to support rental demand. Because population growth data is not available, long-term demand remains an open question, but the current metrics do not suggest a sharp downturn or rapid acceleration.