I don’t think it really matters what any of our opinions are about why the prices have gone up does it? Have your realtor do a comprehensive analysis of the area, and if possible the floorplan you want. If the comps are significantly lower then there is a high probability that the properties that are for sale will eventually come down in price. They issue at hand is that you will simply have to wait them out. Homes that ask for significantly more then the recent valuations will have a hard time getting appraised.
The biggest issue is that sellers are frequently in denial about the sales price. A realtor can show them comps until they are blue in the face but most all sellers do not realize the true reality of the situation until they sit on the market a few months and then it finally hits them. Even when that happens many of them figure to wait until the next year and then try again.
Similarly when one home is overpriced, the next seller entering the market feels he can ask for the same overpriced value… it is kind of like a virus. It never helps when realtors pacify the sellers by telling them yes they think they can get that overpriced sale done simply to get the listing but that is commonplace.
Your best strategy is to wait or try to submit offers that are in line with the comps. Some sellers do see the light when a reasonable offer is submitted that is backed up with valid comp data. Not many though.
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