After four years of economic instability, the housing sector has begun to show signs of recovery. Many experts believe that now is the best time to buy a home, but you should proceed with caution.

"The market bottomed out in the second quarter of this year, based on our national numbers," says Stan Humphries, chief economist at Zillow.com, a real estate research company. Other analysts believe that prices may continue to decline. According to Yale University economist and Professor Robert Shiller, famous for predicting the housing crisis, the sector has yet to recover.

In an article published by The Wall Street Journal, Shiller cites the high level of foreclosures and high unemployment as factors holding back the price recovery.

If you are thinking about buying a home, these 10 tips can help you make the best decision:

1. Get a financial self-assessment

 It's important to assess the financial condition before making a purchase. The most important thing is to figure out our income and how much money we have set aside for a down payment. Obtaining a mortgage is challenging, even though interest rates are currently low. Banks are increasingly demanding in verifying your income and credit history.

2. Set realistic expectations

If you're buying your first house in Abbotsford, it's vital that your goals for property value growth are reasonable. One of the main indicators of house prices from the firm Standard & Poor's. This means that buying and trying to sell after a few months or a year is no longer feasible.

3. Think like an investor

Think about the expected return on your investment, the risk and the term. If you buy to lease a home, the profitability will be determined by the rental income less maintenance costs and taxes. This becomes the profitability, along with the property's annual appreciation.

One of your priorities when purchasing a home to live in would be to make the best possible investment. The easiest way to do this is to look for neighborhoods with the best colleges, since those areas are more likely to be magnets for families.

4. Consider continuing to pay rent

When comparing the costs of purchasing and maintaining a home to the costs of renting one, it's important to keep in mind that buying and maintaining a home is more expensive. 

The study concludes that in 75% of the analyzed areas, buying is better than renting. However, each buyer must do their own analysis. You can use the AARP calculator.

5. Seek pre-approval for a loan

The buyer would know your credit score and the interest rate at which you will receive a mortgage if you request approval from a bank. “To make a better choice, it's important that you look at a range of bank options,” says Ilyce Glink, a personal finance specialist and author of books on home buying.

6. The house can be a retirement plan

Moving houses can pay you dividends. “It's becoming a more common strategy among retirees and those approaching retirement age. They move to a smaller house or sell and use the equity as a source of income, “says Armand Christopher, owner of the Dallas-based real estate firm Senior Living Realty, which specializes in seniors.

7. Consider the improvements

Calculate the cost of the additional investment that the home requires. There is no such thing as a perfect property, and even the most recent ones need adjustments and modifications. It is important that the improvements made are directed at increasing the value of the property.

8. Think long term

Purchasing a house is a long-term commitment. It is suggested that you buy with the intention of holding it for at least five years. This gives you more time to enjoy the benefits of owning a house, whether you live there or bought it as an investment to rent out.