Sotheby's, Christie's and Contemporary Art Market Totals

As appraisers, we are aware what has happened over the past year to year and a half in fine and decorative art sales.  We also understand that it will take some time before the markets completely return to early 2008 and 2007 levels, especially in the contemporary art segment.  Many believe the worst is now behind us, but the contemporary art market still struggles, and the struggles has impacted collectors, dealers and the major auction houses.

Scott Reyburn of Bloomberg looks at the total sales figures for Sotheby's and Christie's contemporary art sales held during 2009, and reports the totals are down 75% from the previous year.  Keep in mind the first half of 2008 was strong, it was the late in the year sales which saw the major declines.

Reyburn blames the lack of guarantees for much of the loss, preventing consignors of high quality and desirable contemporary art from being offered at auction, yet I am sure the economy, and the buying habits of collectors has also changed. Reyburn reports that in 2009 Christie's and Sotheby's contemporary art sales totaled $428.3 million.  On the surface it sounds like a lot of money.  But in 2008 the two auction houses combined for sales of $1.97 billion, and in 2007, $2.4 billion.  The 2008 and 2007 figures are rather staggering, especially looking at the market today.

Reburn states

Worldwide auction sales of contemporary art grew more than eightfold between 2003 and 2007, according to France-based database Artprice. Demand contracted in the fourth quarter of 2008, after the September collapse of Lehman Brothers Holdings Inc., with Sotheby’s and Christie’s losing at least $50 million and $40 million respectively as artworks failed to achieve prices guaranteed to sellers. Phillips de Pury & Co. also stopped providing guarantees before its fall series of sales.

“As soon as guarantees were taken off the table, sellers became uncertain,” said Philip Hoffman, chief executive of the London-based Fine Art Fund. “Clients don’t want to see big- ticket works go to public auction and fail. A lot of people turned to discreet private sales at the auction houses.”

Private sales of contemporary art raised more than auctions at Christie’s in the first half of 2009, said the London-based auction house. Sotheby’s would not comment on private sales.

Demand Declines

Demand declined at smaller evening auctions in London and New York during the first half of the year. Christie’s February sale in London raised only 8.4 million pounds ($13.6 million), the lowest total at an evening event in the U.K. capital since 2004.

To read the full article, click HERE.