PHOTO: Melbourne’s housing market could see an orderly adjustment. Photo: Josh Robenstone

Melbourne’s housing market looks set for another year of modest price falls amid weak sentiment, curbs on borrowing money and a wave of new supply.

But experts hope the city’s surging population will put a floor under the declines as more new residents look for family homes.

The city’s residential market has been coming off the boil after five years of soaring prices, with a regulatory crackdown on bank loans and scrutiny of lending standards from the financial services royal commission.