"It hasn't affected us, certainly, the way it has the rest of the country," Taylor said. "It is surprising that even though homes are appreciating that fast in Utah, people are still qualifying for them and buying them. The low interest rates and the flexible loan plans make more expensive homes affordable for more people. It's good for the homeowners when their homes appreciate that much."

The report noted that two Utah cities ranked in the top 10 highest rates of house-price appreciation among 275 U.S. metropolitan areas. St. George ranked No. 9, with home prices there climbing 20.6 percent in the third quarter compared to the same quarter in 2005. Salt Lake City was No. 10 at 20.4 percent. The Provo-Orem area placed at No. 18 at 17.6 percent.

Kay Ashton, regional vice president of Home Loan Corp. in Bountiful, said Utah's high prices have not prevented customers from qualifying for loans.

"We noticed a surprising number of our buyers this year were moving in from out of state," Ashton said. "It's been very nice to have a strong appreciating market and a hot purchase market. Utah was very slow to come to the appreciation table."

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E-mail: danderton@desnews.com