Is the art market showing signs of life again?

The fine-art market has shrunk for the past five quarters. With prices plunging, auction houses have been looking for any positive sign they can find. ArtPrice is chiming in with its own bit of good news. The Art Price Global Index, it says, increased 4.97 percent in the second quarter.

While this change in direction doesn't undo last year's market turmoil, it may point to a slow recovery. Progress of the recovery continues to be debated hotly, but it's cited as the major factor in the Art Price Global Index's uptick, and the resulting increase in morale among dealers, auction houses and collectors could provide the necessary momentum necessary to give this trend legs.

ArtPrice puts its Art Market Confidence Index, a measure of art-market participant sentiment, up 20 points since the end of the first quarter. Through 2009, auction houses have relied on a set of lower expectations to measure success, typically whether an auction's performance reached pre-auction sales estimates. While several hit the low end of the range provided for each auction, year-over-year sales relative to comparable auctions in 2008 tended to be down 70 percent. Inventory available for auction suffered, as many collectors held back their stronger pieces for more lucrative returns in a stronger market.

The New York market showed strength into the midpoint of 2009, with a 10 percent increase in art prices, following a 27 percent plunge in 2008. But more important than the numbers is that the art community is ready for the recession to end. Sotheby's CFO has proclaimed the bottom, and ArtPrice is reporting increases in sale prices and confidence.

Excerpts from Is the art market showing signs of life again? by Tom Johansmeyer. Read full article

Comments

Popular Posts