ばか！バカ！　馬鹿ー月！

Sotoba is an old-fashioned Japanese village nestled deep in the mountains. It has a small population of about 1300, and the villagers strictly follow age-old traditions and customs.
One sweltering hot summer, a mysterious and deadly disease begins to spread rapidly among the villagers, affecting young and old alike. Following these puzzling deaths, a family of beautiful and elegant individuals moves into the abandoned 'Kanemasa' mansion on the hill-side over-looking Sotoba...

from MangaUpdates

More details.

There was an anime about this a few seasons ago. Maybe you remember that one. (although that doesn't change anything about the... suggestion being incomplete)

Shiki (屍鬼, Corpse Demon) is a horror novel by Fuyumi Ono.



Status: 5 Volumes - Completed
Genre: Supernatural, Horror, Mystery, Fantasy
Synopsis: The story takes place in a particularly hot summer in the nineties, in a small quiet village called Sotoba. A series of mysterious deaths begin to spread in the village, at the same time when a strange family moves into the long abandoned Kanemasa mansion. Toshio Ozaki, dean of the only hospital in Sotoba, initially suspects an epidemic. But as investigations continue and the deaths begin to pile up, he becomes convinced that they are the work of the undead plaguing the village. A young man named Natsuno Yuuki, who hates living in the village, begins to be pursued and surrounded by death. (Wikipedia)

There are anime adaptation and manga adaptation based on this novel. And I think this is a novel, not a light novel.

Someone already translate Volume 1 Prologue and Volume 1 Chapter 1 Part 1 on LiveJournal.