the influx of foreign buyers (particularly money coming 
  from China that is not that price sensitive)

I thought this was a major factor in the increase in home prices. Anecdotal evidences of "tourists" coming in to buy property as an investment, instances of people buying homes without even visiting and bidding wars with homes ending up in the hands of people paying premium and in cash. This phenomenon has also been reported in other major cities like London, Toronto, Vancouver.