With the ongoing housing recovery, the foreclosure market is also stabilizing and foreclosure prices are bottoming out, according to a report from FNC Inc.

Foreclosure price discounts are now at pre-housing crisis levels, averaging 12.2 percent in Q4 2012. In 2004, foreclosure discounts hovered near the same levels, averaging around 12 percent. At the peak of the crisis, discounts for foreclosed homes averaged 25 percent, data from FNC revealed.

Discounts though tend to be more steep for low-tier properties and average 18.4 percent, while high-end properties (more than $500k) have an average discount of 0.4 percent, with many selling above their actual market value.

The technology provider also reported single-family REO and foreclosure sales have been trending downward, accounting for 18.1 percent of sales in Q4 2012, down from 24.2 percent in the same quarter a year ago.

Out of all states, Michigan led with the highest concentration of foreclosure sales, with 56 percent of single-family home sales categorized as foreclosures in Q4 2012.

Rounding out the top five for foreclosure sales were Alabama (31 percent), Georgia (27 percent), Illinois (26 percent), Tennessee (25 percent).

When zooming in on performance in metro areas, FNC found Detroit had the highest percentage of foreclosure sales, 66 percent in Q4.

The metro areas that displayed the biggest declines in foreclosure sales over a one-year period ending in Q4 2012 were Las Vegas, Riverside, Sacramento, Phoenix, and Seattle.

In some of those metros—Phoenix, Sacramento, Las Vegas, Riverside, plus San Diego—FNC also noted many buyers bought foreclosures at prices that exceeded market values. On the other hand, FNC found price discounts tended to be higher in metros located in judicial states, such as New York, Boston, and Philadelphia, where price discounts were 30-33 percent.