The median price of a U.S. home plummeted 12 percent to $180,100 in the fourth quarter of 2008 compared with the year-ago period and sales of proprieties with mortgages in default accounted for 45 percent of all transactions, a sign that foreclosures continue to take their toll on the housing market, Bloomberg reported.

Prices fell in nine out of every 10 cities, according to data from the National Association of Realtors. The steepest price decline was in Fort Myers, Fla., down 51 percent, followed by Saginaw, Mich., down 41 percent.

Meanwhile, U.S. foreclosure filings were above 250,000 for the 10th straight month in January, reported RealtyTrac Inc. According to the Center for Responsible Lending, a foreclosure reduces the value of surrounding homes by an average of $8,667, because it sells at a reduced price, which appraisers then use to set values for other properties in the area.

The average U.S. rate for a 30-year fixed mortgage fell to 5.16 percent this week, compared with 5.25 percent a week earlier, according to Freddie Mac. The week of Jan. 15 had the lowest rate on record at 4.96 percent.