Christchurch housing market under pressure with more EQC applications

17 Epsom Drive Rangiora sold at an auction in Christchurch last week. Photo / supplied.

Christchurch's hot housing market could be inflamed by a rush of EQC applications for missed earthquake damage.

Last year the Government brought in a $300 million fund to fix properties sold after the Canterbury quakes and then bought by new owners.

Real Estate Institute director Shane O'Brien says buyers could move to more modern homes, but they're used to doing their homework for quake repairs.

He says the 5700 applications received by EQC could restrict the supply of houses in a compressed market.

House prices are up 6 per cent from a year ago and data from the Real Estate Institute of New Zealand shows the median price in Christchurch was $503,000 as of September, a record high for the city.

Ray White recently announced a 100 per cent clearance rate at an auction in Christchurch last Friday.

Ray White New Zealand South Island regional manager Jane Meyer said there was no better example of why it remained a seller's market.

"Week after week we continue to see incredible results for our vendors and it provides further evidence that now is the time to be listing and selling your property.

"To achieve a 100 per cent clearance rate under the hammer for nine properties at one event is great in any market and there's no doubt the Christchurch market is red-hot at the moment."

Nevertheless, Christchurch still bears little comparison with Auckland house prices, which were $1.25 million as of September. Auckland's prices increased 35.1 per cent in a year, a record for the city.

The wider Auckland region had a median house price of $955,000.

The national median house price was $685,000, an increase of 14.7 per cent.