The woman, who is in her 80s, broke the auction record for a two-bedroom unit in the Glebe area when she sold a two-bedroom unit at 2a Hereford Street for a whopping A$2.006 million.

Broker Rhonda Yim of BresicWhitney said there were eight registered bidders at the sale, four of whom were active.

It was very special, and the results of the auction far exceeded our expectations," she said.

"The guide price was $1.5 million and the reserve was $1.65 million," she said.

The buyer, who lives in a large house on the same road, asked a friend to bid for her because she was nervous.

I'm really happy for the lady who bought the house, she met stiff competition," Ms Yen said.

This lady has lived on the street for 80 years and she wanted to stay on the street and downsize. She has been a local all her life and wanted to keep that lifestyle.

"There is a lot of interest in this flat from people downsizing because of the size of the two-bedroom flat."

The flat was sold by an investor and was part of a women's refuge and other types of community housing before it was converted into flats in 2008/09.

The conversion was beautiful, Ms Yim said.

At the other end of Sydney, in Hornsby Heights, a four-bedroom home has set a new suburban record.

The home at 86 Galston Rd sold for A$2.38 million at auction, with three of the six bidders competing aggressively.

Jessica Cao, an agent at Ray White Upper North Shore, said she had noticed a "cautious" attitude among buyers.

I think they will be more cautious as more properties come on the market by spring, she said.

Ms Cao auctioned off a property at 2 Jindalee Pl, East Killara, for $3.5 million, with four out of five registered bidders actively bidding. She said the property was sold to a young family.

She said, "It is a solid double brick house on level ground.

There was a lot of interest throughout the bidding process. Today's auction was even tougher as the buyer was very cautious.

Meanwhile, in Middleton Grange, a first-time buyer couple ended their 12-month search for a home.

Their bid at 10 Hargrave Avenue was $1.18 million, $30,000 above the reserve price.

Ray White Green Valley broker Adrian Bonino said four of the five bidders were active during the auction.

He said the sellers were a retired couple who were planning to move closer to home.

"The buyers were a young first-time homebuyer couple that I've been showing them for the past 12 months," he said.

"They were overjoyed when they finally bought a house and said they never wanted to see my face again!"

"The inventory we are seeing is still very low and many buyers are actively looking in this area. This property had 45 groups come through in just three weeks.

"We haven't seen such a big change in inventory levels until spring."

PropTrack economist Anne Flaherty said the number of homes at auction would pick up in the final weeks of winter.

She says: "For homeowners who changed their minds about selling this year, 'market uncertainty' was the primary driver.

That uncertainty is now beginning to ease. Interest rates have remained stable for two consecutive months and property prices have continued to rise, supported by stronger buyer demand.

Seller confidence is returning and if recent auction levels pick up, we could be in for a busy spring.

Next week, Ms Flaherty said NSW would see its first Super Saturday since early April, with 879 listings for auction in Sydney alone.