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Overbuilt condo markets in Vancouver and Toronto at risk, says RBC president

Overbuilt condo markets in Vancouver and Toronto at risk, says RBC president

 

SOURCE:By The Canadian Press

TORONTO - The head of Canada's largest bank says the housing market, especially in Vancouver and Toronto, could be at risk in 2012.

Gordon Nixon, president and CEO at Royal Bank (TSX:RY.TO - News) told a banking conference that the Canadian housing market could be headed for a slowdown.

He says the overbuilt condo markets in Vancouver and Toronto, where home prices are sky high, are especially vulnerable.

His remarks came as data showed that housing starts rose more than expected in November — with condos in Toronto and the Atlantic region leading the way.

Nixon says while the risk of a downturn is higher now than a few years ago, there are significant differences in Canada's market that would prevent a U.S.-style collapse.

A housing bubble in the U.S. caused in part by years of easy credit crashed during the recession and has yet to recover