"In 'your day' a single wage earner could support a family and stay at home mum and pay off the mortgage because houses were relatively cheap."
And this is where you youngens need to wake up to yourselves-you cant compare to the past because the past was different. For starters as you said mum stayed home, however today mum works. What this does is creates a dual income houshold (a factor you all like to dismiss when comparing stats). Interest rates were also massivley higher back then compared to now (another point that seems to be dismissed...).
The market dictates the price-prices have gone up because the market can afford it. Pure and as simple as that. This is because we have more money these days-interest rates are lower and most housholds are dual income.
Prices will come down when unemployment increases and or interest rates increase.
