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When agent Robert Milloy listed two “trophy” properties in Victoria this week for record prices, he took the lead in a stampede by his competitors to tap into an elite international market.

“They are coming for all the things we take for granted: Clean air, a stunning environment, safe streets,” said Mr. Milloy, of Sotheby's International Realty Canada. “In the world market, these are perceived as exceptional value.”

In recent weeks, more than half a dozen homes with asking prices in excess of $10-million have hit the market in Victoria, each one more expensive than the last listing. The listings are being marketed in places such as London and Los Angeles, the prices listed in euros and U.S. dollars.

It's a remarkable spike in a market where the record sale, set more than a year ago, is $10.5-million – a property that is now listed for $17.5-million.

Mr. Milloy's two offerings now stand as the most expensive in the country. The Sweet Pea is a 15,900-square-foot waterfront property in the Uplands, Victoria's most exclusive neighbourhood. It's listed at $28.5-million. And in a rural setting just outside of town, Swanwick Ranch offers award-winning architecture set on 67 acres overlooking the ocean, for $24-million.

The Sweet Pea was bought in 2000 by Todd Axelrod, who deals in historic collectibles. (His online auction house, Gallery of History, offers items ranging from a guitar signed by Paul McCartney to a hat that belonged to John Wayne.) He tore down much of the existing house, and expanded it in a multimillion-dollar renovation. It was listed for sale last year with a $25-million price tag, with no takers.

While Vancouver is frequently cited as one of the most livable cities in the world, Victoria has quietly eclipsed her big sister in housing prices.

“We're being discovered,” said realtor Peter Nash, who until Thursday afternoon boasted the most expensive listing in the city. But his $18.5-million listing was only on top for a week. “There's a lot of new money coming in, people who come here and work elsewhere or who use this as a second home.”

The staggering price increases are not limited to luxury homes. Five years ago, a million-dollar home in Victoria meant waterfront property in a good neighbourhood. Today, a million dollars buys a family home on a nice street that probably needs some work.

“We have not peaked yet,” says agent Leslee Farrell, who is listing an Oak Bay waterfront home known as Salty Towers for $15-million.

For real estate agents, it is a giddy time. But for first-time buyers, it's a nightmare.

Simon Rose, a 32-year-old human-resources director for a development company, bought his first home in March.

He and his wife Cristina hope to start a family, but finding a home big enough for their plans, even with a combined income of $115,000 a year, was tough.

“We got rid of our student debt on Feb. 15, and closed on the house on Feb. 16. I was out of debt for 27 hours,” Mr. Rose said.

They borrowed against their RRSPs, got financial help from family and cleaned out their savings to scrape together a down payment on what he calls “our half-million-dollar cottage.”

The three-bedroom home, just 1,200 square feet, is in busy James Bay, close to the waterfront and the city's downtown core. “We love it, except on the Fridays when we have to pay the bank.” With biweekly payments of $1,300, Mr. Rose said, there isn't much left for extras – but they are saving for the day when they are down to one income.

July was another record-shattering month for Victoria real estate, when the average single-family home sold for almost $575,000 – a $60,000 increase from a year ago.

Mr. Rose expects to trade up houses in a few years, but in the face of steadily increasing prices, he didn't want to wait any longer to get into the market.

While real-estate prices have gone up across the country, fuelled by continued low interest rates, Victoria prices have escalated at a rate that has astonished even seasoned real estate agents.

Tim Taddy, of Taddy Owen-Flood, has been selling homes in Victoria for 27 years. He calls today's market unique.

“A lot of us have been surprised at the strength of this market, and how long it's gone on,” he said.

“We've reached the synergy here; it's not just retired people who are moving here any more. People in their 30s and 40s and 50s are moving here for the lifestyle, people who will bring their family here and fly back to Calgary or Vancouver to do their business.”

Mr. Rose, who was born in Ontario, said he didn't expect to be captured by the Victoria lifestyle.

He said he came to the city only to complete his master's degree.

“I thought when I got my MBA I would go to Vancouver, but I fell in love with Victoria. It grows on you. The pace is great,” he said.

“I talk to my friends in Vancouver and Toronto, and they talk about their 1-1/2-hour commutes, and I walk to work in 15 minutes,” he said. “If I was forced to transfer back, you'd see my fingernails gouged across the country.”