House prices in Victoria have fallen almost 10% in a year and the number of sales plunged about 25%, new figures show.

The Real Estate Institute of Victoria on Friday released figures for the December 2008 quarter that showed prices dropped 0.9% in the three-month period.

Comparing the figures to the December 2007 quarter showed the median price of properties fell an average 9.7% across the state.

The median house price was $426,000 in the final three months of last year compared to $472,000 a year earlier, the figures show.

The Age