RICS 3rd Quarter 2010 Arts and Antiques Survey

The 3rd Quarter 2010 RICS Arts and Antiques Survey shows the All Lot price increasing for the third quarter. This is the seventh consecutive positive reading for the All Lot price indicator. One of the more interesting indicators is a sign that prices are rising in the middle market and staring to build some momentum.  We will seem, but the news is positive.  Future price growth is also encouraging with demand increasing as well as supply. So long as demand stays ahead of supply, prices should show signs of growth.

This report is always good for tracking market trends.

Interesting is the best performing sub sectors were silver and jewelry, while books and contemporary art struggle.  I know the contemporary art market at the top has been encouraging, so I am assuming this is geared more toward the middle market.

I will soon be posting the results of the Appraiser Workshops Fine and Decorative Arts Confidence Survey.  It will be interesting to compare the two.  Hope to post the results next week.

RICS states

The latest RICS Arts and Antiques Survey showed prices continued to rise in Q3 2010. The All Lot price balance edged up from +24 to +26 i.e. 26% more respondents saw prices rise rather than fall during the last quarter.

A breakdown of the survey shows that price increases were most noticeable in the mid-range category of £1,000-£5,000, with the price balance jumping from +16 to +33. The wider category of £5,000-£50,000 also saw a marked rise in prices, with the price balance rising from +25 to +36. Prices in the lower and higher end of the spectrum still recorded increases albeit at a slower pace. Anecdotal evidence from respondents suggests that reasonably priced items are moving well.

Ten of the eleven sub-sectors showed a positive balance with only Contemporary Art recording a slightly negative balance (–1). The best performing sub-sectors continues to be Silver and Jewellery. Although prices are still rising, the pace of growth has declined in both the Silver and Jewellery sectors, with the balance falling from +58 to +55 and from +48 to +42 respectively. The continued buoyancy of these two sectors reflects the historically high prices that precious
metals are commanding.

Respondents were asked to name the strongest performing sector in their opinion, and while the majority unsurprisingly opted for gold, silver and jewellery, oriental art and ceramics was also frequently mentioned.

Looking forward, over the next 12 months respondents expect to see a rise in demand and availability. Expected demand is expected to outstrip supply, although the gap between the two is narrowing. Indeed, expected demand increased from +36 to +44 while expected supply increased from +17 to +36.
To read and view the full RICS Arts and Antiques Survey (PDF) click HERE.

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