October 21st, 2013 1:31 PM by DRU SCOTT
The simple answer to how the economy relates to home prices is, yes- they are related.
Home prices are affected by supply and demand. Because people have a need to live a reasonable distance from where there are jobs, the supply tends to be somewhat limitted.
Therefore, as employment stabalizes (less unemployment) the demand for homeownerships goes up. This demand drives prices up.