Official data recently confirmed that for the month of January, sales of existing homes managed to slip marginally across the US, but the figures are still better than those that were recorded for January of 2009. It seems that consumer sentiment is still conflicting. While people do want to spend more now that the recession is over, caution is still in the air, especially with unstable economic data from every sector.

A monthly drop of 7.2% in the sales of exiting residential properties is well above the 11.5% drop that was registered in 2008, and this has given some new hope to experts, who consider the housing market to be one of the most important segments of the country's economy.

Let's look at the other side of the coin as well. January sales had managed to drop despite the rebates and offers that the Government had put into place to encourage buying and selling of properties. "Most of the completed deals in January were based on contracts in November and December. People who got into the market after the home buyer tax credit was extended in November have only recently started to offer contracts, so it will take a couple months to close those sales", said Lawrence Yun, NAR Chief Economist. This does manage to dampen the spirits.

Also, there are some who are seriously doubting the economic recovery and its pace now, especially in the light of the disappointing data that is coming in from other sectors as well.

Those who are optimistic are expecting the sales to return into the profitable territory soon, but there are others who have grave doubts. Most of us have our fingers crossed!