The strength of the U.S. economy in 2017 and 2018 improved so drastically that many considered it unsustainable and expected it to drop in 2019. This was confirmed by preliminary data released by the U.S. Department of Commerce. Just a little over a month into 2020, plenty of uncertainty surrounds the U.S. economy going forward. From the somewhat-simmered trade war with China to the spread of the coronavirus disrupting travel and supply chains, the possibility of the economy slowing down — and of a recession — is very much in play. Although the good economic times were never going to last forever, this hasn't deterred the housing market. During this upswing in economic activity, the housing market experienced a recent uptick in new home sales and single-family housing starts. But as prospective buyers scoured the market, they may not have realized that many homes across the country are overpriced.

Methodology

Demand in a certain housing market is influenced by a number of considerations. Certain areas are home to a healthy employment rate, attractive jobs and growing wages. Sellers know these factors will attract prospective buyers, possibly prompting them to list their homes far above their actual value. Although home value doesn't directly impact the cost of homeowners insurance, several related factors such as the age of a home and location do. Additionally, if any remodeling or other improvements are made, this can prompt an insurance company to lower rates. To determine which housing markets in the United States are the most overpriced, GOBankingRates used data from Zillow to analyze the difference between the median list price and median home value for single-family residencies in the nation's largest housing markets. With this in mind, explore the slideshow above to see which 10 cities have the most overpriced homes in the U.S. Related:

• Top 10 housing markets in 2020
• 10 hottest 'hoods' for selling homeowners insurance in 2020
• 2020 Insurance Outlook: Insurers adapting to a volatile economy