"Unless you have a federally funded subsidized program where people can qualify, it's almost impossible to get into homeownership," Weiss said. "At the very bottom, Summit County homes are going for $400,000."

Other states that showed strong appreciation included Idaho at 12.27 percent, Montana at 11.68 percent, Wyoming at 11.67 percent and Washington at 11.63 percent.

Michigan, which ranked dead last in appreciation, saw home prices drop 0.66 percent in the first quarter compared to the same period in 2006. Massachusetts home prices fell 0.56 percent.

With Utah's average annual wage at $34,600, expensive homes could take longer to sell. In addition, a national housing slowdown could have a ripple effect on the state as people moving to Utah find it harder to sell their homes.

"It's a double-edged sword," Matthews said. "Sure, we like the idea of having a strong housing market, but we can't ignore the fact that we have a need to provide homes for a certain population and a certain job base."

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