October 08 Art Market Review Video – artmarketblog.com

Hi Nick,

You bring up a great point about the fact that auctions aren’t the best method for selling artworks in this current economy given the fast pace of the sales while buyers are hesitant to begin with. I do think that galleries and fairs are doing better because they have more flexibility to change their prices, while auction house estimates (and often reserves) are set approximately two months before the actual sale transpires, so when the sale finally occurs the estimates do not reflect current market conditions. However, looking at the results from Sotheby’s London sale, it is clear that the auction house consulted with the sellers of many of the works in the sale and adjusted the reserve price for many of the lots to reflect current conditions. This resulted in many more lots not being bought-in but instead selling for far below the lower estimate. This sort of change is the beginning of the correction, as the prices corrected to the new market conditions which exist in the art market.

Meanwhile, where did you hear that fairs and galleries are still doing extremely well? I’ve heard the opposite not only from people at Frieze but also in the media:

http://online.wsj.com/article/SB122427429143445469.html?mod=googlenews_wsj

http://www.artinfo.com/news/story/28751/financial-crisis-slows-sales-in-chelsea/

Adam

Gallery sales are something I cannot attest to, as I am still unrepresented at the moment. Art *fairs*, though – now this is something that with great conviction I can honestly say that yes, they are doing quite well. The amount of sales has alot to do with the artist’s work as well.

War Eagle Arts and Craft fair, ranking in 3rd in the nation for size and sales did quite well this year. The ones who sold the most had the most variety in prices, a little of something for every budget. Another important thing to note was that artists whose work seemed familiar or was obviously inspired or attributed to another artist’s stylings failed to sell out with much interest. Unique works, whether oils, acrylics, fibre arts or like my own, intricate handcarved and heavily textured pieces did extraordinarily well.
Of most of the vendors there watched people pass, while those of us offering more than just another Bob Ross or Warhol inspired canvas panel had customers who were everey scale of economic status, avid collectors and newly curious alike…it’s just a more informed market now.
Last year, people bought whatever they had money handy for, if it suited their tastes. This year, questions abounded as to what style, media, techniques, and tools were used. People were relieved to be offered a COA, and most knew what one was (last year, it was a little known addition to the purchase.) I attended, sold out, did very well. Most assumed I’d *just* break even. Originality and having alot of information on hand for any who asked made all the difference. All other fairs attended since March 2008 have followed the same trend. People who don’t know are asking, curious about their first investments into starting a collection. Seasoned collectors are asking to make sure the purchase will enhance their walls and portfolios, rather than worry if the value paid was lost forever, or worse, wasn’t worth it . I apologize for replying to this, with no formal art teachings or degrees…but when it comes to fairs, even juried ones, that’s when I have at least enough experience and confidence to speak up.

Nick, I thank you for your time spent on your blog – it shows, and is one of the few things I read continually these days. Yourself and C-Span are the majority of my weekly “e-bookshelf” fodder, and it is appreciated.

Sincerely,
LHK *aka*
‘CreatedSouls’