Contemporary Art Sales Yet to Recover

Recent sales have shown that perhaps the art markets have hit bottom, along with a few signs for potential growth.  But it appears not all market segments are showing signs of recovery. Scott Reyburn of Bloomberg is looking forward to upcoming large October Contemporary Art sales in London.  His report leaves much to be desired in looking for a rebound, as it shows sales totals are still expected to be well below last years sales. Of all market segments, contemporary art has been hit the hardest. The initial statistic that alerts readers and collectors that all is not well is  the total pre sale estimates are 81% below those of last years Contemporary art sales when combining estimates from Sotheby's, Christie's and Phillips.

We have covered many of the reasons on the AW Blog in the past for the lower estimates such as lack of guarantees, reluctance of sellers and more private sales through the major auction houses. Private sales and art placements appear to be an instrumental part of major auction house business and financial strategies. In any event, the sales will be interesting to track and see the results.  Of course the AW Blog will post the results as they become available.

Reyburn reports

The estimated value of London’s October contemporary-art auctions is down 81 percent from 2008 as prices and lots on offer decline amid the financial crisis.

Sales at Sotheby’s, Christie’s International and Phillips de Pury of “Part I” works during the week of the Frieze Art Fair are estimated to fetch at least 20.8 million pounds ($33.1 million), according to a total of auction-house figures calculated by Bloomberg. The equivalent sales last year had a low estimate of 107 million pounds.

The three auction houses stopped guaranteeing minimum prices to sellers at the end of 2008. Collectors remain reluctant to offer high-priced works in public without guarantees; auction companies are selling more pieces through private transactions.

“There’s still a definite reluctance to sell at auction,” London-based dealer Thomas Dane said in an interview. “People got used to unrealistic prices and they still have them in their heads. A lot of people don’t need to sell at the moment. There are quite a few private transactions going on.”

The volume of sales at contemporary-art auctions dropped between 70 percent and 80 percent and the prices of works by 50 percent or more since the collapse of Lehman Brothers Holdings Inc. last September, said the London-based research company ArtTactic.

To read the full Bloomberg article, click HERE.