Onlookers packed the property at 31 Burlington Ave, Earlwood, as Menck White auctioneer Clarence White struck the gavel.

The three-bedroom and one-bathroom house was guided in the $1.45 million range by Adrian William headmaster Adrian Tsavalas.

About eight to 10 bidders were expected to participate in the auction of the distinctive home, which has wooden floors and high ceilings.

One first-time buyer ended up buying the property for $1.76 million, beating seven other registered bidders - five of whom were active bidders.

Mr Tsavalas told the Daily Telegraph that Earlwood had performed strongly in auctions over the past few weeks, with many families looking to get into the suburb.

"Earlwood typically has a larger lot size than you see in other suburbs in the Inner West.

"Today's result is a strong one for the property and everyone is very happy with the way it has unfolded. We are increasingly seeing reserves in this area being broken up, especially for young families and first-time buyers who see its potential value."

Bidding for the property got off to a false start when a woman made an opening bid of $1 million.

This elicited laughter from the audience and the auctioneer, but things got serious when the next bid reached $1.45 million.

As the auction progressed, the successful bidder and the underbidder exchanged bids of $10,000 back and forth.

Suddenly, a third person tried to bid an extra $1,000 to steal the property from his rival.

This strategy ultimately did not work and the young first-time buyer ended up paying $1.76 million for the 373 square metre home.

Mr White said the past few weeks of auctions had been interesting because the market seemed to have flipped.

"We've seen some good results and buyers seem to be more confident than they were six months ago.

"There are good and bad bids, and usually we don't see bids of $10,000 to $50,000 like we did today. Buyers are bidding cautiously because they are more sure of their budget. This usually leads to more quick bids, usually in $5,000 increments."

"Based on the current trajectory of the market, if you're a first-time buyer and you weren't in the market six months ago, now is a good time to assess your financial ability and step into the market. It won't be at the bottom for too long."

Some of the other features of the refurbished property include a built-in study and desk, bathroom with spa, bedroom with built-in wardrobe and off-street parking.

The location is also a major selling point, being close to parks, schools and transport.

The house at 105 Moverly Road, South Coogee was listed by Jeremy Elmowy of Ray White and auctioned by Alex Pattaro with six registered bidders, three of whom were active bidders.

The brick family home has been an investment rental in the Navy and the owners live overseas in Greece.

Mr Elmowy said the property eventually sold for $3.88 million.

"The winning bidder today is from Vaucluse; he will be completely renovating the property and changing the floor plan but not knocking it down," he said.

Buyer enquiries for the property have been strong due to the tight inventory in the area.

"We have found that our listing is the only one of its kind at the moment, rather than having three or four similar listings on the market at the same time."

"There also seems to be a large number of people moving to the area from Vaucluse, Dover Heights and Bondi, due to getting larger lots close to the beach for their money."

Finally, a property in the Inner West that used to be a bar and medical facility sold for $4.25 million.

The seven-bedroom and five-bathroom property at 306 Abercrombie Street in Darlington began as a bar in the 1880s.

It was listed through Nick Moraitis of LJ Hooker and sold to the young family.

Mr Moraitis said the sellers were delighted with the outcome and the successful family wanted to renovate it into the permanent home of their dreams.

"It's a strong market with low inventory, which means it's a great time to get into the market and trade properties."