Sacramento market year in review 2015

I was completely surprised to see that there were only 1714 homes for sale in all of Sacramento county for December 2015. That is a 20 percent drop in the number of homes for sale in November 2015. There was a upward trend in the homes for sale from March 2015 to July 2015. There were 2300 homes for sale in March 2015 and it continued upwards until there were 2016 homes for sale in July 2015. When I saw the supply of homes increasing , I thought we were going to see the end of the rapid appreciation in our area. Now the supply of homes for has started a downward trend starting in August 2015. I don't know why there are fewer homes for sale. I would think now that values are way back up that would give an incentive for real estate investors to sell. I am really going to watch the supply of homes for sale in 2016 to see if prices have peaked or if we are going to see more appreciation. The increase in mortgage rates will also have an impact on price appreciation so hopefully the Fed doesn't raise rates too often in 2016.