The Spring Auction Season

Reuters runs a very good article on the upcoming Spring auction season, which starts tomorrow with an impressionist sale at Sotheby's. Some of the sale was covered in Sunday's AW post from a NY Times article. The Reuters article covers the auction market with an "after the fall" approach. Overall an interesting article, much already known or expected, but it still reinforces that times have changed for auction houses and collectors, not to mention appraisers.

The article states On the eve of another art auction season staged against a backdrop of chaotic global financial markets, the days of the $300 million dollar sale are over, at least for now.

"The market is in free fall, we should be clear about that," said Ian Peck, president of the art-related financial services firm Art Capital Group. "There's been a massive contraction, with downward pressure on pricing."

The spring season, which begins in earnest on Tuesday with an Impressionist sale at Sotheby's, is expected to feature largely pared down sales that speak to leaner times even though some items have estimated values of up to $24 million.

The article continues Sotheby's CEO Bill Ruprecht said, "Sellers have had more trepidation. Our best clients are saying now is the time to buy," but would-be consigners seem content to wait it out."

Peck said fine art moves in tandem with high-end real estate, and "if you have luxury Manhattan real estate, this is not the time to sell it."

While a few collectors have been forced to sell by misfortune, and there are the usual estate sales, a general reticence has cut the size of sales by up to half.

"Work that is fresh to the market, soberly priced and of very high quality" will move, Ruprecht said.

Porter said the slimmer pickings could work to the market's ultimate advantage by creating pent-up demand, whether for this season or next.

Sotheby's and Christie's said they focused this season on works of impeccable quality and provenance that are fresh to the market. Some have never before been sold at auction.

To read the full Reuters article, click HERE.