After two years of exuberance during the pandemic, the art market has entered a period of correction, which offers challenges but also creates opportunities. Both are important to understand.
Looking at the challenges, a recent Artnet Intelligence Report revealed a 14% drop in global fine art auction sales, reaching just under $5 billion, in the first five months of 2023. This shift is marked by less frenzied bidding and more rational pricing. Notably, the ultra-high-end segment has been hit hardest, with sales above $10 million declining by 51% amid limited supply of top-tier works. Ultra-contemporary art sales also dipped by 26% from 2022, reflecting cooled speculation. In contrast, the $100,000 to $1 million range experienced an 18% year-over-year increase, showing strength and depth of bidding.
A journalist covering the Artnet report contacted me for my thoughts about the evolving preferences of collectors, quoting me in the piece. “When the market was frothier, people were buying just the name. And now people are looking at the quality,” I said.
But amidst this market correction, a window of opportunity has emerged to acquire high-quality art at reasonable prices. Savvy buyers can discover attractive price adjustments, indicating sellers’ acknowledgment of the end of the overheated sellers’ market. Whether you’re new to collecting or adding to an existing collection, I can offer guidance on this shifting terrain. Please contact me if you want my insight.
Additionally, I’m looking forward to starting the fall season at The Armory Show at NYC’s Javits Center from September 7-10. With over 225 galleries from more than 35 countries, this international art fair is a must-attend. If you’re in town, I’d be delighted to connect and explore the fair together.
8/22/23