I concur with Jay ... with one caveat. It depends on what your plans are for your next home. If you are planning to move up to a larger home, it is actually a good time to do so. The process of selling your property might be a little slow and you might command less than you had hoped given the high inventory levels, but you would be able to pick and choose from a number of great values on the purchase side. It is always beneficial to secure the best deal on the more expensive property.
If you would be going into temporary housing or moving out of area, however, I would do as Jay advised and wait for the number of listings to come back down a little bit.