Art Auction Market Decline

SOURCE www.cnbc.com
Art auction sales at major auction houses are expected to be down from last year, with a decline in the art market following a peak in 2021-2022 due to factors like cheap money, a booming stock market, and fiscal stimulus. The decline is attributed to a lack of supply as sellers hold back on selling their trophies for a better market environment, leading to a stalemate between sellers and buyers.

Key Points

  • Expected $1.2 billion in auction sales, down 18% from last year
  • Global fine art auctions fell 27% in 2022 with a 32% drop in average prices
  • Contemporary and postwar art category sales plunged 48% in the first quarter of this year
  • Sellers want higher prices while buyers seek discounts, leading to a pricing stalemate

Pros

  • Opportunity for buyers to find bargains
  • Strong sales in private markets and galleries

Cons

  • Decline in auction sales
  • Stalemate between sellers and buyers