Is Watertown, MN 55388 a buyer’s or seller’s market?

The Watertown housing market right now

In the three months ending August 31, 2026, 39% of homes in Watertown, MN 55388 sold above their list price, the typical home went under contract in 29 days and there were 1.8 months of supply. Under four months of supply means sellers have the edge: expect competition for well-priced homes. That’s based on 29 home sales.

Compared with the same period a year earlier, the share selling over asking was about the same (38% then), homes sold more slowly (14 days then) and the median sale price rose 7% to $395,829. Overall, Watertown is less competitive than a year ago, which gives buyers more room.

Within Carver County, homes here sell more slowly than in 73% of the county’s ZIP codes, and sell more often over asking than in 55%. On our competition score, Watertown ranks #82 of 296 MN ZIP codes with enough sales (score 77 out of 100).

Nearby, buyers who want less competition could look at New Germany 55367 (0% sold over asking) or Young America 55397 (22% sold over asking), while Mayer 55360 (56% sold over asking) and Norwood Young America 55368 (56% sold over asking) are even more competitive.