Just started playing this game for the first time. I have done everything I can conceivably do in Cyseal. I've talked to everybody in town and completed every quest I received that does not require me to leave town. I have a full party and we were only Level 3 at point that I finally left town. By sheer stubbornness and incessant reloading and luck, I have won a few fights in which I was ludicrously outclassed and thus eked out Level 4 for everybody. Now, however, no matter which path I venture down I encounter swarms of minimum 6 enemies that are all Level 4+.

Am I missing something here or are you just supposed to be constantly outclassed?