A Realty Times reader wonders if it's wise to buy a home in Salt Lake City after years of steep housing price increases. Is it wise to buy a home in any rapidly appreciating market?

Ms. Evans:

I am a resident of Salt Lake City and just read your article at realtytimes.com about the SLC market. I'm looking to buy a house right now and am kind of nervous due to the steep increases in prices over the past few years. Do you see the Salt Lake Valley continuing to increase in house prices, or flatten out now or possibly drop?

Thanks for any help you can give me,

Austin Smith

Realty Times responds:

It's discouraging to see home prices rising, but there are usually good reasons for sudden demand. Over the last 10 years, there have been seismic changes in tax laws, the economy and where industries and jobs are located, migration from cold weather states to warmer states, legal and illegal immigration which has swelled the border states, and more -- that are making people rethink where and how they want to live. One motivation driving homebuyers is affordability. As California became more and more expensive for homebuyers, sellers began to sell and look elsewhere to buy. Outmigration from California is helping to populate inland cities such as Las Vegas, Phoenix and Dallas.

Salt Lake City is also in a boom, according to our Realtor reporters on Market Conditions Reports:

• According to Realtor Michael Johnson, one of the reasons Salt Lake City is booming is because Utah homes saw less appreciation over the last five years than any other state, and the sellers' market didn't kick off until the first quarter of 2005.

• Realtor Alan Curtis says, "If you're looking to buy, time isn't on your side. Between 2006 and 2007, Salt Lake County house prices grew an astounding 15.19 percent (one of the fastest in the U.S.) and there's no end in sight."

• The market is stabilizing, says Realtor Steve Bojack, because unrealistic sellers are overpricing their homes and buyers are going for the value homes. "What does this mean for the buyer? There is a lot of inventory out there and much of it has sat on the market for a while because of incorrect pricing. Finding the right home should be much easier this summer. The big thing is that list prices are higher and you will need to negotiate to get to the "correct" price," he advises.

So the market in Salt Lake City is still strong, but unrealistically priced homes are lingering on the market, and that could spell opportunity for you, if you plan to continue living and working in Salt Lake City.

Realtor Gary Kennard explains why the area is growing. "Salt Lake City is the capital of the State of Utah. It is the largest and most important city in a large region of the interior West and serves as the industrial, financial, religious, and commercial center of Utah."

"Salt Lake City lies high above sea level in a mountain valley flanked by the Wasatch Mountain Range to the east and the Oquirrh Mountains to the southwest. The mountains around Salt Lake City are world famous for their skiing, hiking, fishing, hunting, and overall beauty. It has a dry climate, with only 16.2 inches of precipitation per year. However, the mountains in the Wasatch Range are well watered, and the runoff is used to water the valley."

Further, he says, "Downtown Salt Lake City is noted for its broad streets and spacious blocks, a legacy of the Mormon settlers who laid out the city in 1847."

Sounds like a nice place to live.

But what you want is a guarantee, and no one can predict if the boom will continue or if some financial or natural disaster could devastate the city. Otherwise, the elements are certainly positive for long-term appreciation, even if the window appears to be closing for rapid short-term appreciation.

My advice is not to be swayed by fear. Think instead of quality of life. Any time you think of buying real estate, think long term, buy for location and keep your home in great condition, and you'll be fine no matter what the market does.