What I hear is---though I know the Santa Fe market better---is that both markets have bottomed out, basically, until further notice of some next catastrophe, and prices are jumping around a bit on the bottom. Inventory has decreased and many bargains have been snapped up. Yet, some prices continue to fall as they look for the point where the property sells. My sense is that Taos and more rural properties will be better bargains in general, but that it will depend on where you really want to live and will be on a case by case basis.
Some pockets in Santa Fe, say, seem to be holding steady, rising a tiny bit, and are getting multiple offers and other signs of being correctly/well priced.
I have listings in Pilar but would defer to a Taos expert regarding the Taos market.
The (so-called?) recovery is far from complete and is patchwork-y, but the market is becoming more balanced as far as favoring not only buyers and not only sellers.