I've had first person experience of the market this year - bought a house with the missus, and am in the process of selling my house.
When I sold my house I had 3 offers in excess of the asking price. Two from investors, one from a FTB. Obviously accepted the FTB.
Investors are really a problem. The houses either side of mine are currently owned by investors, and are perfect FTB properties. The government should really be taxing the **** out of investors to free up the masses of housing stock
As far as buying goes we were looking for nearly 2 years. Ended up thinking outside the box and found an area we felt was undervalued, and bought a house in January.
Turns out we were right.