Home Appreciation: Is more always better?

[Christopher Boon]

When looking at new areas around the US to invest in, we always like to see positive home appreciation over time. That said, is their a scenario where super strong home appreciation over the past X# of years could be too high and maybe even be a red-flag highlighting an oversaturated market that has already matured?

I've heard people say things like "Only focus on places have have seen home values increase by at least 100% over the past 10 years", but could an area with incredibly high growth rates (e.g. 200% increase in median home values over the past 10yrs) indicate something else, possibly that:

A. These specific markets may have already gone through their hyper growth phase, are seeing its home values peak, and home value appreciation may start to plateau over the coming years?

B. These specific markets are unicorns since stronger home value growth rates is always better, so try to get in at any cost?

C. Something else?

Would love your advice or 2cents on this.

Thanks so much!
:boon :)