![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2017\/12\/JPbombales-1637-compressed.jpg\")
<\/a><\/p>\nPhoto: James Bombales<\/em><\/p>\n The Canadian housing market has a global reputation for its high housing prices and household debt levels. Yet, despite the troubling figures, the market isn\u2019t at risk of a housing crash \u2014 at least for the time being.<\/p>\n While Canadian property appears to be highly valued, the housing market remains at a low risk of a sharp correction in the next year, according to a new report from investment management company Vanguard.<\/p>\n\n \u201cWhile affordability is a huge concern, particularly in large cities, Vanguard economists consider that the risk of a sharp correction \u2014 defined as a correction in the space of a year which severely impacts the economy or causes a recession \u2014 is low for markets studied, including Canada,\u201d reads the report.<\/p>\n It notes that structural factors including low levels of housing supply, historically low interest rates and foreign investment explain a \u201cfair amount\u201d of demand for housing in the country over the past 20 years. <\/p>\n But, as the Bank of Canada continues to hike interest rates moving into 2019, the authors write that home prices should begin to soften in the new year.<\/p>\n