Home sales in the US have risen unexpectedly but let's hold off on the cheering. Look closely at the figures and you'll see that the US housing market is still in bad shape.

Sales are still lower than they were a year ago and sales prices are at their lowest in four years.

There are some obvious reasons for the price drop. Foreclosures are driving down prices, according to housing analysts and RealtyTrac says received foreclosure notices in the third quarter grew 71 percent to 766,000 from a year earlier.

Whichever way you look at it, there's no recovery in sight.