On a weekend when four house auctions listed in The Herald all met with success, agents said the Hunter market was stronger than it had been for some time.

Dalton Partners agent Andrew McGavin said a three-bedroom weatherboard at 6 Hopkins Street, Merewether, sold under the hammer for $430,500, which was $10,000 above the reserve.

Andrew Walker of Street Real Estate said a newly built house at 112 Garden Grove Parade, Adamstown Heights, sold on Friday before auction for $620,000.

Robinson Property agent Joanna Cook sold a two-bedroom cottage at 716 Pacific Highway for its reserve of $290,000 and Dowling Real Estate agent Dianne Thrift sold a 1970s brick house at 14 Buchanan Street, Merewether, after auction for $890,000.

Real Estate Institute NSW president Wayne Stewart said interest rates were almost certain to rise again tomorrow but they remained at traditional lows and Hunter property was still relatively affordable.

"Auction clearance rates across NSW have been about 80 per cent with the Hunter in line with this figure and Newcastle has had the biggest property price increases across the state in the past year," Mr Stewart said.

He and other agents, including Streets agent Andrew Walker, sounded a note of caution about the impact of first-home buyers' grants: both believed some buyers would be stretched to meet higher repayments.

Mr Stewart said a number of commercial properties were going on to the market as forced sales as casualties of the global financial crisis.

Ian Kirkwood