Canada Mortgage and Housing Corp., said today housing starts will ease 4.2% this year to 223,600 units.

That’s down from a 17-year high in 2004, but prospects for next year still remain robust. The agency says starts should hit 207,200 next year, the fifth consecutive year of 200,000-plus starts.

The corporation says low mortgage rates continue to encourage building, although the pace will slow as rates creep up.

The agency also predicts that house prices will moderate next year after rising 10.2% this year – a 16-year high.