But more housing still needs to be built to meet expected new demand that was also mentioned in the regional housing study.
Danville is on track to more than meet heightened demand for housing in the area reflected in a regional study two years ago, said the city’s housing development division director.
Since the results of the Danter Co. study were presented at the first Southern Virginia Regional Housing Summit in August 2022, developers have descended upon Danville with residential projects that are now at various stages of development.
Fourteen residential developments are set to provide about 2,525 housing units to meet demand for 606 single-family homes and 760 apartments, according to figures from Danville Housing Development Division Director Susan McCulloch.
“We’ve exceeded that demand,” McCulloch told the Danville Register & Bee during the Third Annual Southern Virginia Regional Housing Summit held Thursday at the Institute for Advanced Learning and Research.
More than 30 businesses and organizations sponsored the event, where developers, real estate agents, representatives from financial institutions, local government officials, architects and property owners could meet, mingle and discuss development projects.
Experts in housing, economic development and other related fields gave presentations on the housing market in the region and across the state.
About 60% of local markets across the state have seen more home sales, including Southern Virginia, said Ryan Price, chief economist for the Virginia Association of Realtors.
“You guys are actually outperforming the state in terms of sales activity,” Price told attendees during his presentation.
In Danville and Pittsylvania County, “there’s more activity, there’s more people moving here,” he added.
Statewide, home prices are still climbing in 2024, with a 5.1% increase in the median price of a home. The median price is at about $450,000, Price said.
But places like Danville have seen a drop in median sales price since last year through August, he said. According to figures presented by Price, the cost of a home fell from $170,000 through August 2023 to $145,000 during the same period this year — a 15% decrease.
The county’s median sales price stayed roughly the same at $204,300, compared to $201,500 through August 2023, according to Price’s figures.
Referring to localities like Danville, Price said smaller markets tend to see more volatility in their price points.
There are “pockets of affordability” in communities like Danville, he said.
“This, to me, is a competitive advantage that you guys have in attracting 25- to 44-year-old workers from other parts of Virginia who are having a hard time cracking into the for-sale market,” Price said.
In Southside Virginia, sellers are receiving close to their asking price in home sales — and homes are selling relatively quickly, he said. The region is also seeing more inventory and more listings, Price added.
Mortgage rates have been high across the state — at 6% to 7% — making the market sluggish, he said. But, “we’re certainly better than we were at this time last year,” he added.
Higher interest rates have hampered people from entering the housing market, Price said.
“It’s pricing them out,” he said, adding that those who already own homes are “hunkering down” and staying where they are.
Inventory is improving in Virginia, “but it’s still a seller’s market,” Price said.
There are only 20,000 listings in Virginia, where there are about 8.7 million people, he said. That is an unhealthy amount, he said.
But at the end of his presentation, Price said he expected mortgage interest rates to come down.
“We’re seeing a little moderation from where we’re at this year,” he said.
Since a baseline study on regional housing in 2021, 5,348 units have either been built or are in construction or development in the region, said Linda Green, vice president of economic development at the Institute.
Danville and Pittsylvania County have more than 2,000 planned housing units, said Green, who is also executive director of the Southern Virginia Regional Alliance.
She mentioned the 1,800 housing units expected for the $400 million planned community development in Axton in Pittsylvania County. Some of the projects mentioned to the Register & Bee by McCulloch were also pointed out by Green.
“Danville and Pittsylvania County will have more than 5,300 multi-family units and more than 4,300 single-family housing units added to its inventory by 2029,” according to Green’s presentation. “These units are currently in the planning, permitting or construction phase.”
McCulloch, during her presentation, pointed out the numerous local incentives for development in the city, as well as available properties. The latter included the former Belk building in the River District and the former Leeland Hotel on Main Street.
She also revealed a city-controlled site that’s available for a single-family subdivision — 142 acres in the Schoolfield District close to the upcoming Caesars Virginia casino resort.
City staff will pursue rezoning to allow for development there, she said. Two conceptual plans for the site have been completed, including 250 lots allowed under current zoning and 300 lots allowed when the area is rezoned, she said.
A request for proposals seeking bids from developers and contractors will be sent out for the site, McCulloch said.
Pittsylvania County Economic Development Director Matt Rowe told attendees that “the groundswell is just going to continue to grow” in the region.
“There’s going to be some tremendous seismic shifts, probably here within the next few weeks that are probably going to change the entire fabric of our region and where we’re going in the region,” Rowe said.
The 3,528-acre Southern Virginia Mega Site at Berry Hill, which officials have been trying to attract a major industry to for more than a decade, “is going to have a transformative impact,” he said.
“We anticipate probably having some news about the site in the coming weeks or months,” he said.
An economic development project announcement is also expected at another industrial park in the county in the coming weeks, as well as one in the future that would bring 200-300 jobs to Hurt Industrial Park, he said.
Read the original article here (Danville Register & Bee, John Crane)