Such double-digit price appreciation gains have not been seen in Utah since the mid-1990s, according to a March report by the U.S. Office of Federal Housing Enterprise Oversight. According to the federal report, home prices statewide rose an average 13.36 percent in the fourth quarter of 2005 compared to the same quarter in 2004, moving Utah to a No. 18 spot among all states and the District of Columbia in house-price appreciation.

Eric Allen, director of Metrostudy, a real estate consulting firm with offices in West Jordan, said despite the double-digit increases, Salt Lake housing prices have not become overinflated.

"We do not see this market as being in a housing bubble," Allen said. "There are definitely areas around the country that have the threats of a housing bubble. We are at a level that is sustainable. Prices are high, but we are not an unaffordable market."

Earlier this month the National Association of Realtors predicted U.S. home sales this year would "level out."

Existing-home sales across the country are projected to drop 6 percent to 6.65 million this year from a record 7.08 million in 2005, the association said. New-home sales are likely to fall 10.9 percent to 1.14 million from the record 1.28 million last year. Housing starts are forecast at 2 million in 2006, which is 3.2 percent below the 2.07 million total starts last year.

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E-mail: danderton@desnews.com