Buying a home in a Seller's market can be tough to accomplish. First, prices are higher than might otherwise be the case. Sellers don't really need to negotiate much because they know they can get their price. And, even if the buyer requests a home inspection, Sellers don't don't have to make repairs. They can sell the home in "as is" condition.
Further, many sellers may not accept offers contingent on mortgage approval because in a lot of cases and markets they can generate all cash offers. So what is a buyer to do. In some cases, it may be smarter to rent until the market cools down. The risk is that though prices may fall when there is more inventory, when that happens mortgage interest rates are likely to be higher. So whatever is saved by a lower price could be eaten up in higher payments over time.
The best scenario is the all cash buyer. If downsizing in particular, if the buyer can make an all cash offer with a quick close, the chances are the seller may negotiate on price a bit. After closing on the home, the buyer can then take out a mortgage if needed to claw back some of the cash for living or other investments. This is the best scenario that can be expected in a seller's market.
Otherwise, be prepared to pay top dollar to buy a home and perhaps even be out bid with another buyer willing to pay more than list price. It is very frustrating; but since real estate like all investments is cyclical. The day will come when it is a buyer's market.
