The three-bedroom bungalow at 13 Warrah Street had been virtually unchanged since the 1970s, with a one-and-a-half car garage added in the 1980s.

It sold for an undisclosed price, believed to be more than $2 million, at an auction on Tuesday.

The auction had 12 registered bidders, resulting in a final price that was $400,000 above reserve.

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"To get that much for an original home, it's amazing," Mr Lemke said.

"The house directly behind it basically sold for less money six months ago and it was completely renovated."

The home, which is in walking distance of Marketown and Newcastle Interchange, sold to a local family who plan to renovate the 531 square metre property.

One of Wallsend's most spectacular homes is poised to propel the suburb towards the $2 million barrier.

On the market for the first time since its construction in 1997, the five-bedroom brick home at 18 Barrabool Close is set for auction in the near future.

A guide has not been set, but expectations are believed to be about $1.8 million - slightly more than the suburb record $1.78 million paid for 8 Corio Close in August.

It is situated in a quiet cul-de-sac in Silver Ridge Estate and features several living areas and three bathrooms across three levels.

"The sheer size and stature is the main thing," PRD Newcastle's Ryan Nichols said.

"It's just a huge floor plan that would suit some of these extended family type situations that we're seeing a lot of.

"It was built very well about 25 years ago and it's stood the test of time as far as the materials the owner has used."

The home has been attracting local families as well as buyers from Melbourne and Sydney.

The current owners, who built the house, have built another home elsewhere in Newcastle.