Home prices in Massachusetts fell 3 percent in December compared with a year ago, a narrower drop than the national 4.7 percent drop in prices, according to data analysis firm CoreLogic.

Home prices nationwide fell for a fourth straight month in December as distressed sales continued to weigh on prices. The national drop was steeper than the 4.3 percent year-over-year decline seen in November.

Excluding distressed sales, prices in the Bay State rose 2.9 percent on a yearly basis, ranking it as one of the top five states in price appreciation. Homeowners in danger of foreclosure, or in "distress," often sell their homes at a significantly reduced price.

"While overall prices [nationwide] declined by almost 5 percent in 2011, non-distressed prices showed only a small decrease. Until distressed sales in the market recede, we will see continued downward pressure on prices," said Mark Fleming, chief economist for CoreLogic.

2011 marked the fifth consecutive year of a decrease in the national home price index.

Including distressed sales, the five states with the highest appreciation in December compared with December 20120 were:  Montana (+4.4 percent) Vermont (+4 percent), South Dakota (+3.1 percent), Nebraska (+2.5 percent) and New York (+1.7 percent).

The five states with the greatest depreciation year-over-year in December, including distressed sales, were Illinois (-11.3 percent), Nevada (-10.6 percent), Georgia (-8.3 percent) Ohio (-7.7) and Minnesota (-7.5 percent).