Is Buying a Condo in Midtown Toronto or Sheppard-Yonge/Finch a Smart Move in 2025?

The Toronto condo market in 2025 remains a hot topic for prospective buyers, with ongoing discussions about affordability, interest rates, and long-term investment potential. If you’re considering purchasing a 1+1 bed condo in either Midtown Toronto or Sheppard-Yonge/Finch in the $650K range, you may be wondering if this is the right time to buy or if waiting could yield better results.

Currently, you’re renting for about $2,200/month, while buying would cost approximately $3,500/month (mortgage + maintenance + taxes) with a 20% down payment. With interest rates showing signs of stabilization after previous hikes, is now the time to invest in real estate, or should you hold off for potential price corrections?

Market Timing & Affordability

One of the biggest challenges with real estate investment is timing the market. Over the last few years, Toronto’s housing market has been unpredictable, influenced by interest rate adjustments, supply chain issues, and broader economic shifts. The general consensus among experts is to buy when you’re financially ready and can comfortably afford the monthly payments.

If you’re planning to live in the unit for the long term, then short-term price fluctuations are less of a concern. A mortgage broker can help you assess your financial situation, ensuring you’re not overextending yourself. Additionally, this market presents a unique opportunity—buyers have more negotiating power than in previous years, meaning you might secure a better deal than during peak market times.

Comparing Midtown Toronto and Sheppard-Yonge/Finch

Both Midtown Toronto and Sheppard-Yonge/Finch are desirable locations, offering great amenities, strong transit connections, and high demand. However, your choice should align with your lifestyle and long-term goals.

• Midtown Toronto (Yonge & Eglinton)
  • Vibrant neighborhood with excellent dining, shopping, and nightlife options.
  • Strong public transit connectivity (Eglinton Subway Station and Crosstown LRT).
  • High density and ongoing construction, which may be a downside for some buyers.
  • Slightly higher price per square foot compared to Sheppard-Yonge/Finch.
• Sheppard-Yonge/Finch
  • Known for its diverse food scene, particularly Asian cuisine.
  • Close proximity to Highway 401, making it ideal for commuters who drive.
  • Slightly older, more spacious condos with higher condo fees ($800–$1,000/month for some buildings).
  • Generally more affordable per square foot compared to Midtown Toronto.

Considerations Before Buying

1. Check Market Trends: Use platforms like HouseSigma to track building/unit values and determine whether pricing trends favor buyers or sellers.
2. Affordability & Lifestyle: Your mortgage and carrying costs should be sustainable. If you need a car, proximity to highways may be a factor. If you prefer a bustling lifestyle, Midtown may be a better fit.
3. New vs. Older Buildings: Newer condos might have lower maintenance fees initially but can increase over time. Older condos often have larger units but come with higher maintenance fees.
4. Job Stability: If your job is secure and you can manage payments even in a fluctuating economy, buying may provide long-term security and investment growth.
5. Interest Rate Trends: If interest rates drop further, refinancing could be an option. However, if they remain stable or rise again, securing a lower rate now could be beneficial.

Final Thoughts: Should You Buy Now?

There is no definitive right or wrong answer, as market conditions can shift unexpectedly. Instead, ask yourself:

• Would I regret not buying now if prices increase significantly?
• Would I regret buying now if prices drop after my purchase?
• Do I prioritize homeownership stability over potential market fluctuations?

The peace of mind that comes with owning a home is invaluable to some, while others may prefer the flexibility of renting. Ultimately, it comes down to financial readiness and personal goals. While this may be a buyer’s market, don’t rush into a purchase solely for that reason—ensure the decision aligns with your long-term financial and lifestyle needs.

At the end of the day, Toronto’s real estate market has proven to be resilient, and both Midtown Toronto and Sheppard-Yonge/Finch remain strong investment areas. Conduct thorough research, consult with professionals, and buy when the timing feels right for you.