Supply and demand is part of the problem. However:
1) More than 1 in 10 condos sit empty. Imagine if those were returned back to the supply. 
There is an artificial supply shortage like OPEC withholding oil to up the price.
2) When a market comes decoupled from economic principles, there is more going on. There is a supply/demand issue. But the market should still be linked to basic economic principles. In this case (housing market) it should still be linked to local income. When it decouples from that central principle, something else is influencing it. If OPEC withheld oil, oil prices can only rise to the level that can be afforded. Beyond that, something else is influencing. Pricing also drives demand and it was. Sales were declining; prices were declining. The foreign buyers tax also helped to re-couple the housing market. The 1st time buyer loan was an unneeded external influence that has once again decouple the market from economic principles and prices are on the rise again.