I've been watching the housing market for awhile with an eye to purchase a primary residence, but it seems like we're starting to trend into a buyers market... lots of inventory stacking and price reductions abounding... any thoughts or suggestions?

If you do this, you will see the trend of who is representing a lot of investor buyers in a given area. 

It is already one of the hottest areas in the last 3yrs. 

Fairly market proof as the university always feeds this rental market regardless of the tourism market trends.

Also, can anyone provide any insight on the hottest "up and coming" neighborhoods to invest in?

You do have to be of the mindset that you are likely going to be buying at retail, and we are in the late stage of an upward trend. 

Purchase price: $775,000 Cash invested: $850,000 Contributors: Lucas Taylor In one of the hottest areas of KC Crossroads this is a 12,000 sqft commercial building.

If you are new, eve with a RE agent, take a look at the availability, daily, in your market, learn the trends, learn what areas are hot, learn what will rent,sell, for what, size, upcoming areas/appreciation, what have they paid in the past in taxes is a good indication per sqft, condition, etc. 

I've noticed over the decades that warm/cool cycles in decorating are more useful to notice than particular color trends. 

Follow the trend of your area.