Home insurers shaken after series of quakes

With the recent spate of earthquakes across the Wellington region, the biggest barrier to home buyers in the Wairarapa is gaining insurance, said a local estate agent.

The number of house sales has jumped locally and the median house price has increased to $257,500, revealed the latest figures from the Real Estate Institute of New Zealand (REINZ).

However, Bayleys Masterton manager Mark Morison said some home buyers were having trouble securing insurance.

"While these tremors are taking place some of these insurance companies have said 'no we're not going to do any more new policies at this point'."

He recommended purchasers try to take over a vendor's existing insurance policy.

His comments follow the Government's unveiling of changes to the KiwiSaver and Welcome Home schemes designed to help more Kiwis into homes.

Mr Morison said it was especially difficult for a young couple with children trying to get into their first home and often family assistance was the helping factor.

New home sale figures released last week by REINZ show July produced a bumper month of sales in Wairarapa and across New Zealand.

Wairarapa sales rose to 67, up from 47 in June. The median house price jumped $7500 in the last month.

REINZ chief executive Helen O'Sullivan said it was the most active winter for a while, with the volume of sales higher than would normally be expected. "Reports from agents around the country suggest that first home buyers are moving quickly to secure properties ahead of any move by the Reserve Bank to impose lending restrictions on buyers with lower deposits."

However, Mr Morison did not think high Wairarapa sales figures were due to "panic buying" by first home buyers.

Demand for properties in the affordable price range had been constant for some time.

Nationwide there were 6777 house sales in July, a six-year high for that month. The national median price fell $9000 - 2.3 per cent - compared to June to $385,000. It is now $15,000 below the record median set in March this year.

The figures come after Prime Minister John Key revealed changes to the KiwiSaver first-home deposit subsidy and Welcome Home underwriting mortgage scheme.

More people will be eligible for the KiwiSaver subsidy, and the price-cap of a house for which the subsidies can be used has been increased.

Income eligibility limits for both schemes will change, with a threshold income of $80,000 for a single person buying a house and $120,000 combined for two or more buyers. APNZ