Real Estate over the long term has always appreciated in value
The continuing appreciation of home values in the West -- and especially Utah -- is not an anomally. Why? Because people always need a place to live. Real estate has historically been less volatile than other investment mediums like the stock market. And, over the long term, it has provided a great return on investment.
If a buyer (according to NAR) where to put $10,000 on a typically priced home at typically appreation rate of 5%, they would see a return of $110,300 after 10 years. Compare that to the stock market appreciating at 10% annually where they would only see a return of $23,600.
From a historical perspective, if you keep your home 6 to 10 years (vice looking for a quick "flip" profit) that investment is going to pay off. The housing cycle we're seeing now is nothing new. Remember back in the early 80s and 90s when some areas of the country experienced the worst downturns of the previous 25 years. This caused localized weaknesses and job losses. But, if you purchased a home then and sold it today you would have seen a great return on your investment.