Tsavalas said he had run three auctions so far on Saturday and all three sold above expectations.

“The homes are selling for more than they would have in the last quarter of last year,” he said.

“It feels like sentiment has recovered,there is a feeling of optimism out there from the buyer pool.

“The buyers I am speaking to … are under the impression that interest rates will come down,including a drop this month,and some are hoping to get[in] before the market potentially picks up after some rate reductions.”

In Vaucluse,an investor beat a single mother for a two-bedroom apartment at 8/11 Isabel Avenue,paying $1.19 million.

A first-home buyer also competed for the top-floor unit,LJ Hooker Double Bay selling agent Aaron Del Monte said.

It had been listed with an initial guide of $1 million,later updated to a $1.05 million guide.

Bidding began at $900,000,followed by a $100,000 rise and then spirited bidding,he said.

The reserve was $1.15 million,but they were selling at $1.1 million,he said.

“We are pretty bullish on the market,” Del Monte said. “October November December was pretty tough.

“Every open home is packed,auctions have been strong. There is a lot of positivity with regards to interest rates coming down.”

A Sydney dad paid $5.8 million for a development opportunity in Willoughby and hopes to build a duplex to create two homes for his family members.

The winner of the keys to 16 First Avenue beat 11 developers for the two-bedroom brick house set on 809 square metres.

Twelve parties registered for the Willoughby block which was listed with a price guide of $4.75 million and a reserve in line with the guide.

Bidding began at $4.5 million and six parties made offers in a fast-paced auction.

But it wasn’t until proceedings lifted $1 million past the original offer that the dad entered the fray – and soon after won.

Belle Property Willoughby selling agent Brandon Insuasti said the buyer hoped to build a duplex,so there would be two homes on the one block,and use them to accommodate his family.

Insuasti said that process could cost about $3 million less than buying two established houses for his children in the same area.

“The market for land and knockdowns and potential is strong,” he said.

“The market at the high end is softening a little bit because there is so much stock.”

He said some in the market had been holding off making decisions at the end of last year,but that was changing in the new year.

“Now people are pretty much over it,and buying,or selling.”

Elsewhere,a lower north shore family paid $3.86 million for a five-bedroom Roseville house.

The home at 12 Duntroon Avenue was in a conservation area and can be extended but not knocked down for a rebuild.

Nine parties registered for the home,listed with a $3.3 million guide.

The first bid was at $3.4 million and five parties competed in a fast auction,narrowing to three bidders after the $3.6 million mark,Ray White selling agent Jessica Cao said. The reserve was $3.5 million.

She attributed the interest in the home to its potential and location near a park and schools.

She thought the market was strong,with healthy numbers at inspections.

“The last few weeks,the open home numbers have been very good,stronger than last year,” she said.

“Everyone thinks[the cash rate] is going to drop,so are we going to be right?”