"On the fireplace hearth was a stack of maps and tourist pamphlets.
A few days later, the house sold for $1.43-million. The seller made almost $500,000 in just 18 months."

Here's the issue - someone makes $500k and ran the place as an airbnb for 18 months. No way is that a principal residence and no way does the the capital gain exemption apply. This situation is rampant and it's not just foreign investors.

This bubble will pop (and with a loud bang) the moment the CRA and the province start enforcing the income tax act. There are signs that will happen, but the NDP has to make it a priority for the next couple of years.