More than 560 properties are scheduled to be auctioned just days before Joe Hockey makes his first budget speech, and agents and market analysts say early indications are that the clearance rates will not fall from their recent high rates.

McGrath Estate Agents, which sells predominantly in the wealthier north shore and eastern suburbs, has already sold a quarter of the 101 homes that were due to go under the hammer, before auction.

''I don't think the budget will have a major impact,” chief executive John McGrath said. ''Across the market, sentiment is quite positive.

''Interest rates are for most people a far more important factor in terms of confidence and affordability.''

Mr McGrath said the government had done a good job of managing expectations about the budget. ''People expect a tough budget, but it should lead to a better economic outcome,'' he said.

Despite the positive outlook, he forecast the 15 per cent surge in house prices over the past 12 months would taper off into more sustainable growth and the auction clearance rate would drop to about 70 per cent.

''The intensity needs to come out of the market, otherwise there may be a correction down the track.''

Ray White Mascot agent Paul Thomas will take pensioner Peter O'Sullivan's three bedroom Maroubra home to market this weekend for the first time in 69 years.

Mr O'Sullivan grew up in the house on Bunnerong Road, which his parents bought in 1943 for ₤2000.

''I'm pretty confident of getting a good price. There have been lots of keen people looking at it,'' he said.

Mr Thomas said he was confident of getting more than $1 million for the house, which stands on a 562 square metre block, offering future development opportunities.

''I think the budget will have a negative effect on the market but people still need somewhere to live and interest rates are low,'' he said.

Mosman agent Richard Simeon, of Simeon Manners, expected no impact on auction activity this weekend.

''A small debt tax is not relevant,'' he said. ''It's hot news and attracts very negative media coverage, but it will all be forgotten in two or three weeks.

''Interest rates are low and on hold ... and there is established momentum in the market. Purchasers are committed and want to get into the market before prices rise further.''

Mark Foy, of Belle Property Surry HIlls, said: ''Buyers have made up their mind up to buy. People bid at auction because they have an emotional connection to the property.''

Mr Foy said that depending on what came out of the budget, it could have an impact in the coming weeks but it would be a minor effect.

''What really affects the Sydney market are stock levels and interest rates. A rate increase and a bit more stock on market would have more of an impact than a debt levy,'' he said.

RP Data's Robert Larocca said: ''Most people looking to buy would have factored budget expectations into their ability to pay off their mortgage.

''The most important factor is confidence, and I would be surprised if the budget impacted on this.

''Sydney is showing no signs of going backwards. New listings are up 21 per cent over last year while there are 11 per cent fewer homes on the market.

''Vendors are finding increasing numbers of buyers, which should underpin growth over the winter months.''