Distressed home sales are still pushing down prices in the Santa Fe market; the median sales price of a single-family home in the third quarter dropped 10 percent from a year ago.

For the 265 single-family homes that sold in both the city of Santa Fe and the county, the median price was $330,000 — down from $368,664 in 2010.

After a slow July and August, attributed in part to forest fires in New Mexico, the number of sales reported in September was strong — up 14 percent. The total number of homes sold in the third quarter was 2.7 percent higher than 2010. The biggest jump came in Eldorado, which saw 33 closings in the quarter, up 50 percent from a year ago.

The price declines came even as inventory numbers are down 28 percent from 2009. There are 1,794 homes on the market, down from 2,495 in the third quarter of 2009.

The statistics were released Wednesday by the Santa Fe Association of Realtors.

The price declines on homes continues to reflect the distressed properties — short sales and foreclosures — that now comprise 15 percent to 28 percent of the market, depending on the month, according to Peter Kahn, an agent with Santa Fe Properties. Though foreclosures slowed earlier in 2011, many will be pushed into 2012 due to the backlog still building among lenders and the court system, he added.

And because the overall market has slowed, distressed sales in some neighborhoods comprise a larger share.

"As we get the distressed properties through, we'll see a market that will stabilize," said JoAnne Vigil Coppler, a broker with Keller Williams and president of the Santa Fe Association of Realtors.

Scott Robinson, a mortgage broker with Gateway Mortgage Group, sees sellers who have become more realistic. The home appraisals he sees are coming in right at or just above contract prices. Sellers, he said, "are pricing properly — appraisals are not an issue."

Perhaps the best news for potential buyers is that low interest rates and price declines have pushed the home-affordability index in Santa Fe above 100 for the first time in years. The measure means that those with an average income in Santa Fe County now qualify for the typical monthly mortgage payment on a home.

"That's good news for renters who want to take the jump and buy a home," Coppler said.

Contact Bruce Krasnow at brucek@sfnewmexican.com.