After two years of skyrocketing growth, home prices are dropping in Arizona, according to an analysis from QuoteWizard. Our team of analysts found that the average price of a home in Arizona has decreased by $5,075 since June — that’s the 5th largest drop in the nation, and No. 3 in the nation for biggest decrease in home prices by percentage.

Key Findings for Arizona:

• The average home price is now $442,859 in Arizona

• Home prices dropped by $8,124 in Phoenix

• Home prices have risen 1% nationally since June

READ ALSO: Ranking Arizona: Top 10 best places to live for 2022

READ ALSO: Where Should I Move? The Best (and Worst) Places to Live

While home replacement costs are still high, home prices are starting to come down. From June 2020 to June 2022, the average price of a home increased by nearly 40% nationwide. From June 2022 to August 2022, though, home prices dropped as much as $100,000 in certain states and cities across the country.

We found that home prices have declined in eight states and 32 cities. Utah and San Jose, Calif., have experienced the steepest decrease in home prices. The declines may seem small when looked at in percentage terms, but sudden declines could cost homeowners looking to sell now a lot of money.

How inflation affects your home insurance needs

The coronavirus pandemic has caused a significant change in prices over the last year. That affects everything from the cost of your car and the price of food, to how much insurance you need. Because if your home and the things inside it are suddenly worth $100,000 more, you might need more insurance to cover the cost of replacing them.

Prices for items and services related to home, auto and valuable personal property all changed dramatically from 2020-2021. The price of lumber, however, is skyrocketing. Up 250% in the last year, lumber’s new price could leave millions of Americans underinsured. On average, it now costs $36,000 more to replace a home. And an out-of-date dwelling coverage limit may no longer provide enough money to rebuild a home after a total loss.