House prices in parts of Melbourne could fall another 11 per cent and drop by almost 7 per cent in parts of Sydney, new forecasts suggest, with warnings cash-strapped households may take on more debt to keep up their spending habits.

Moody's Analytics said on Monday it believes more falls in prices are on the cards led by the nation's two largest property markets.

It is forecasting the overall Melbourne market will slip by 6 per cent through 2019 after a 0.1 per cent fall in 2018.

Parts of Melbourne could see falls in house values of up to 11 per cent, according to Moody's Analytics. Credit:Jessica Shapiro

Values in Melbourne's inner-east - around Kew, Camberwell and Hawthorn - are tipped to drop 11.2 per cent this year after losing 4.8 per cent in 2018.