In my opinion Melbourne is still reasonable if a few sacrifices are made but Sydney is getting to the point that without some kind of family assistance it's getting hard if not impossible for a couple on the average income to buy something that isn't either a Studio/1 bedroom joint or a drug den. That really isn't acceptable for 2 x full-time workers.
For me without being able to live with parents while saving for our house we'd be borrowing an extra $50+k or priced out of the market and renting. That option isn't available to everyone, a mates family sold up and moved to QLD which forced his hand to start renting. This while in the middle of a uni degree (as a mature age student) and a partner doing the same has turned a reasonable house deposit into not even 10% by the time your factor in stamp duty on an existing dwelling. They haven't spent any of the deposit and have been still adding what they can after rent + expenses it's just a result of market appreciation over 2-3 years.
In the 18 months since we bought the market has gone up another 15% or ~$70k for our property, when many of these suburbs are now restricted to 80% LVR by the big 4 it just isn't possible to front up that kind of cash as a first home owner.
