Falling interest rates and rising unemployment are likely to shape the housing market in the year ahead

Latest data from Core Logic shows buyers currently have the upperhand over sellers, thanks to higher listing volumes and falling house prices.

Falling interest rates and improving economic conditions could shift the balance next year.

But Core Logic Chief Property Economist Kelvin Davidson says there will also be more people out of a job.

He says lower interest rates might end the downturn in the market, but the labour market challenges means there won't be a sudden upturn either.