Newly released data from Bank of America suggests that the art market is presenting favorable buying opportunities for collectors this fall. Lower auction estimates, gallery discounts, and recent interest rate cuts are encouraging increased participation in events like the New York fall auctions and Art Basel Miami. This comes after a period of lower-than-expected art sales in the secondary market during the first half of the year, with auction prices only 1% above their aggregated mid-estimates, marking the smallest increase in over seven years.
The ongoing market correction began in 2023 due to global geopolitical unrest, high inflation, and interest rates impacting collectors. This trend has continued into 2024. The lack of marquee estate properties in May sales may have also affected bidders' confidence and enthusiasm. Consequently, fewer masterpiece works are being offered, creating what many see as a "buyer's market."
Galleries now face a critical decision: adapt to these new conditions or risk accumulating unsold inventory. Drew Watson, Head of Art Services at Bank of America Private Bank, stated that "collectors are more discerning than ever." He noted that while galleries continue to sell top-tier works, terms are more negotiable on other pieces. Collectors leverage this knowledge to secure better transaction terms such as skipping waitlists and eliminating resale restrictions.
Despite some softening auction prices and reduced bidder competition in certain areas, there is strong collector interest in specific categories like Latin American and Latin diaspora artists. Sales in this sector have grown by 18% year over year and show no signs of slowing down according to recent activity and institutional support.
Watson highlighted that "Latin American artists have seen strong buyer interest and sell-through rates so far this year," citing multiple record-breaking auction sales in spring along with biennales and art fairs becoming key primary market platforms.
The report also indicates that collectors increasingly view art as part of their wealth management strategy. By 2026, art and collectibles are expected to surpass $2.8 trillion in value, comprising approximately 11% of ultra-high-net-worth individuals' portfolios. Interest is anticipated to grow as younger generations accumulate wealth.
For more detailed insights into evolving trends within the art market today—including wealth planning insights—readers can access the full Art Market Update Fall 2024: Opportunity Knocks? report.
Since its inception in 2010, Bank of America's Art Conservation Project (ACP) has helped preserve over 260 important paintings, sculptures, archaeological and architectural works at risk of deterioration.
Bank of America remains one of the world's leading financial institutions providing services across various sectors globally.
Reporters may contact Julia Ehrenfeld at Bank of America for further information via phone at 1.646.855.3267 or email julia.ehrenfeld@bofa.com.