KNOXVILLE, Tenn. (WATE) — Going from historically low interest rates during COVID-19 to one of the highest interest rates to date, homeowners in Knoxville are finding it difficult to sell.

Although there has been a slight decrease in interest rates since October, they continue to be drastically higher than they were two to three years ago. According to Knoxville realtor Steven Hensley, the problem with high interest rates boils down to one thing; affordability.

“You can just afford less, so when your interest rate goes up, you’re paying more in your interest in your monthly payment,” said Hensley.

The increase comes from the Federal Reserve trying to combat inflation.

“In their eyes they raise the interest rates up it’ll kind of cure inflation and stop it and once they have done that the concept is they will begin to slightly lower it,” said Hensley.

However, with inflation, people cannot afford to buy homes they once could have.

“So, your average income can’t even afford our average sales price here right now and that’s what’s tough,” said Hensley.

Plus, they will not be able to get the same monthly prices they might have had two or three years ago.

“I think one of the most shocking numbers that I’ve seen to date of what the interest rates have done, if you would have bought a $1 million house in January 2021 your monthly payment would be lower than what a $500,000 house payment is today,” said Hensley.

If you’re looking to sell anytime soon, Hensley said now might not be the best time, but like the tide, you have to go with the housing market flow. Although it may not be the best time to sell, it is a great time to prepare for a potential interest rate drop.