On a national scale the enclosed article in Yahoo Finance points to the 6 reasons why there are NOT enough homes for prospective buyers.
Of course housing markets are typically influenced first by the neighborhood, then community, and finally by their region. In ‘South County’ (Morgan Hill, Gilroy, Hollister, San Juan Bautista, CA) for example, there is a shortage of homes to choose from and, therefore, home values seem to be forever increasing. 12-16% annual appreciation is pretty typical.
In Hollister we are seeing a slight slow down in the appreciation pace for resale homes this year due to the significant number of new homes being built. In 2015 the average single family residence value increased 12.6%. Morgan Hill and Gilroy’s appreciation for the same period were: 15.5 and 16.9% respectfully. Hollister’s new home construction in 2015 affected its appreciation which, normally is on par or, even higher, than both Morgan Hill and Gilroy, CA.
So the proverbial question: “Is your glass half full, or, half empty?”