Is The Fine Art Market In Trouble? Experts Say Recent Record Low Auctions Spell Worry

While art culture is booming—just look to the success of events like Frieze New York, Zona Maco, and Milan Design Week as proof—collectors have never been more at odds with the market. 

Typically, auction sales at major houses—Christie's, Sotheby's, and Philips—indicate the health of the art market in general, as many of the industry's most well-endowed art collectors tend to frequent the buzziest bidding sessions of the year. 

Over the next few weeks, art sales at these major auction houses are only expected to total $1.2 billion, which ArtTactic notes is down 18% from 2023. 

The factor that has the industry stumped? Buyers are still bidding—it's collectors that aren't willing to sell, slowing the market considerably. 

“We’re seeing what people perceive as a smaller offering this season,” said Brooke Lampley, global chairman and head of global fine art at Sotheby’s, in a CNBC interview. “The proof is in the pudding. It’s the buyers showing up and what the work will sell for that will define our perception of the art market right now. And I expect the results to be strong.”

Although an expected slowdown in the market would typically spell plenty of anxiety for buyers, sellers, and everyone in between, the annual Art Basel and UBS Global Art Market Report eased some tension. 

"The focus for many in 2024 has shifted from rapid expansion at all costs to finding ways to achieve sustainable and profitable growth and stability as they continue to navigate an uncertain economic and political future,” said Clare McAndrew, founder of Arts Economics, in the 2024 Art Basel and UBS Art Market Report.

The consensus appeared cut and dry from many major leaders in the art world. While numbers are down, the market appears to be shifting in a new direction, toward younger artists and buyers. Much like the entertainment industry, the art market is in a time of transition as it acclimates to new demands from each group involved—buyers, collectors, and artists. 

"The ramp-up in participation from new and often younger global buyers, in tandem with gains in the online sector, underscores some critical green shoots in the market with substantial future potential," Noah Horowitz, Art Basel CEO, said in the 2024 Art Basel and UBS Art Market Report. "Overall, the reversal of trend at the high end of the market after years of compounded acceleration was one of the defining features of the art business last year, as it also creates an opening in the market for exciting new trends and narratives to emerge.”