Legendary bond fund manager Bill Gross is warning the state of the Canadian housing market has weakened in recent years, but says the domestic market isn’t headed to a U.S.-style housing crash.

In an interview on BNN, Gross said housing market stability has deteriorated over the course of the last decade, as prices in Vancouver and Toronto skyrocketed.

“The housing market in Canada is a little more tenuous than it was 10 years ago when Canadian housing and Canadian banks were the pinnacle of global banking,” he said Wednesday. “These days there’s a little more risk in housing.”

Gross said those more vulnerable conditions should continue to be an area of focus for Stephen Poloz and the Bank of Canada, as low interest rates have exacerbated some risks in the housing market.

“A central bank has to be aware and has to consider, in terms of interest rate policy, the potential for weakening housing prices,” said Gross, portfolio manager at Janus Capital Group. “Not a replay of Lehman [Brothers], but certainly Canada is a little more tenuous, housing-wise, than it was 10 years ago.”

Gross was also recently named manager of National Bank Investments’ Unconstrained Fixed Income Fund.