Real estate company Harcourts believes the housing market is 'returning to normal', following an increase in sales.

Nationally, the company reports a 44% increase in sales for April, compared to the same month last year.

In Dunedin, Harcourts Business Owner, Chris Kennedy, says the city is following that trend, with nearly 180 sales for the month, up 24on 2008.

However, Kennedy says Dunedin sales make up less than 3% of Harcourts' nationwide figures.