"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."
The dual income household was created as a consequence of prohibitive house price rises above real wage increases. The dual income family did not create high prices. High prices created the dual income family. There is alot of women out there who work part time and send their kids to day care who would be more than happy to stay at home if one income was sufficient. People are devoting more resources to purchase a home than ever before. That means it's less affordable.
As for interest rates being higher, it still cheaper to buy 3x your wage @ 15% than 8x your wage at 6%. Price and consequently the level of debt is the significant factor in determining affordability, not debt.
"The market dictates the price-prices have gone up because the market can afford it. Pure and as simple as that"
^^
This is the most absurd claim imaginable. You would make a good main stream economist believing in this year 12 economics that markets operate in equilibrium and that resources are allocated to their efficient use.
