Official figures have confirmed that for the month of January, Canadian housing starts managed to rise by a much-larger-than-estimated 5.8%, with gains seen in both single and multiple family residential properties, adding more evidence to the speculation that the housing sector is now well on the way to growth, in an otherwise unreliable and fragile economy.

As has been confirmed by official statistics shared by the Canada Mortgage and Housing Corp, which were put forward on Monday, the number of starts for January surged to a seasonally adjusted rate of 186,300 units from December's upwardly revised 176,100 units.

The actual figure has managed to beat the estimate of analysts who pegged the figure at 180,000 units for the month.

"Supply is rapidly coming back into Canada's housing market compared to the extreme shortfalls of last spring through summer, and that should have one increasingly concerned about house prices later this year", Scotia Capital economists said.

It seems that lower borrowing costs have managed to ignite the demand for homes, a development which will help Canada's economy recover from the past year's recession even faster.