Origination Mortgage Corp.

Canadian home prices really are “world class”, at least in the country’s two hottest markets.

A survey by commercial realtor CBRE shows the price for prime residential property Toronto and Vancouver has surpassed Rome and is closing in on Paris. Vancouver clocks-in at nearly $1,400 a square foot with Toronto at a little above $1,200. (Top spot goes to London at more than $3,600/sq. ft.)

CBRE cites growing foreign investment as a key reason for the rising prices. International investors see Canadian real estate as a safe haven.

That’s backed up by high-profile Canadian economist Sal Gautieri. He also points to domestic factors: population growth in Toronto and Vancouver (and Calgary) has outpaced the national average by about 2 to 1 over the past decade; economic prospects remain good in both cities; and low financing continues to be a key factor in pricey markets.