Canadian housing starts showed great strength in December, increasing to their highest level in 14 months according to the Canada Mortgage and Housing Corp.

The housing starts rose to a seasonally adjusted annual number of 174,500 for December 2009, compared to 164,800 units in November. This was the third monthly gain and over the forecast of 160,300 by a recent survey.

The economic stimulus has affected housing the most with the Bank Of Canada slashing its key lending rate to 0.25 per cent in April and will hold until June 2010 if it can. Temporary tax credits for home renovations also have helped the economy and improved confidence in homeowners and home buyers as well.

Toronto Real Estate recorded strong gains in December as well and marked a sharp reversal from the first few months of 2009.

The average resale Toronto MLS price was $441,6707 up 14 per cent from $387,482 for December 2008.