A Look Into an Art Market That Is Down From Last Year

(VitalNews.org) – Art auction house sales are expected to be down in comparison to last year mostly due to buyers taking a break from purchasing in the current high-priced times. Auction houses such as Christie’s, Phillip’s, and Sotheby’s are expected to total just over one billion dollars in sales, which is down eighteen percent from last year, according to ArtTactic.

Pre-Covid there was a demand for art, but as Covid set in, the purchases and the market became slow. The art market had its peak post-Covid as a combination of factors allowed the market to flourish, until last year when the art market began to fall and some pieces were cut by thirty percent.

Auction houses spoke out about their difficulty in the market now, which they say isn’t caused by a lack of demand. According to them, the supply is the issue as collectors aren’t as willing to sell their art pieces and there are no single-owner collections for sale, which could help to increase the supply of products there as well.

The global chairman and head of global fine arts at Sotheby’s, Brooke Lampley explained the current art supply and how it’s affecting the market.

“We’re seeing what people perceive as a smaller offering this season,” Lampley said. He continued. “The proof is in the pudding. It’s the buyers showing up and what the work will sell for that will define our perception of the art market right now. And I expect the results to be strong.”

They’ve also said that many collectors don’t want to put their art on the market because it will be sold for a lower price than they may have gotten when the market was at its peak. Buyers are also looking for discounts because of the rising interest rates.

Philip Hoffman, CEO of the Fine Art Group said, “Sellers want twenty percent more, and buyers want twenty percent less. There is a stalemate.”

Experts have said that collectors aren’t buying as much due to the fact that it’s an election year, they don’t know if the Fed will cut interest rates, and money is “relatively high compared to a few years ago.”

Copyright 2024, VitalNews.org