“The supply of properties on the market is still minimal. We might have a correction if there is an oversupply once owners come off fixed rate [mortgage periods] but who knows what will happen.”

There were 573 homes scheduled to go under the hammer in Sydney on Saturday.

In Sydenham, a two-bedroom terrace at 42 Railway Road sold for $1.28 million to first home buyers from out of the area.

The winning couple outbid four others, three first home buyers and one investor – who was the direct underbidder.

Bidding for the 145 square-metre-block opened bang-on the $1.15 million price guide and was done within minutes after 15 bids. The reserve was $1,185,000.

Raine&Horne Newtown’s Duncan Gordon said buyer demand remained resilient in the face of rising rates.

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“There is certainly a concern at the back of their mind, but they seem to be out in force, happy and confident bidding at auction,” Gordon said. “Buyers are hopeful they are at the end of the rate rise cycle, and some are banking on that.”

The vendors bought the home as an investment property for $557,500 in 2012, records show.