JM asked if anyone is buying art during the pandemic?
I can’t tell you how many inquiries I’ve received during ‘CoVid Time:’ “Is NOW a good time to sell my art?” Some of us need the liquidity, and some become bored, looking at art they dislike on walls, and decide to sell.
So I pulled some facts together to help you decide about selling your art NOW.
JM hopes her 19th century painting will bring about $15,000, its worth about four months ago. I consider this important information, because two things influence a sale in a poor market: the artist/style of the piece, and the price you hope for.
The bad–and the good–news
First the bad: because the wealthy may need to sell, the top of the market, paintings over $100,000, are selling at a discount. This results in a buyer’s market, BUT buyers become cautious and don’t spend. A good sale, one over $100,000, isn’t happening regularly. Paintings in the range of $15,000 and under have a better chance of selling. But when the upper end of the market is overstocked, with few buyers, that middle market becomes depressed. What IS selling are celebrity name artists, in multiples, designed to sell in this depressed market, usually from an edition they KNOW will sell, to keep momentum. And these sell for around the $5,000-$8,000 price point, and under.
Two money players exist in the art market indicating this CoVid Time down-trend: galleries and auction houses, who sell, and banks that loan on artwork. Art financing divisions of banks are taking many inquiries these days from clients wanting to borrow against their art. Bloomberg, April 16, reports a client who spent $18 million in an important London sale must NOW pay for these paintings, and needs a loan against the art to pay for the art. Art finance is hot field today. I know a great art finance banker if you need one.
Secondly, the relationship between the stock and the art market is close. Clients want to sell art to buy under-priced stock. Some want to buy art, because the value of art is down. Some wise collectors want to own art rather than volatile stocks. Turbulence, we call it!
Collectors may seek financing on art they already own, due to low interest rates. The Catch 22 is that values for art, appraised as of today for a loan, is also (typically) down. And value change is either an advantage or a disadvantage (think margin call).
Appraisers working virtually through photographs have seen a decline of 20-30 percent across the market on values we found a month ago. A qualification: a sale today is determined upon the artist/style, and the price point. Advice: get realistic!
Now good news about buying art during the pandemic
The landscape for HOW to buy continues change and this platform will be exciting to watch. Major New York galleries are closed, as are live auctions, and worldwide Art Fairs. Huge fairs, like Art Basel, are now digital platforms only.
How are auction houses navigating this digital change? Auction houses might now be your best venue. Clars in Oakland, and John Moran near Pasadena, have used online bidding for years. Other auctions are ramping up, including virtual private salesrooms. The viewing of art online happens in viewing rooms, and previewing, “handling,” a work happens with your eyes only.
Celebrity artists represented by galleries are selling WELL because they’re accomplished at online marketing, and they’re discounting. To meet the demand for lower price big name art, artists are turning to larger editions of prints, to capture a bargain buyer for a celebrity signature.
Also, great modern design (ceramics, art, furniture, glass) is selling because fashionable folks are bored with their décor, and upgrading during CoVid time!
Will a piece valued at $15K a few months ago sell for $15K today? What’s selling is at a fraction of the volume and the prices achieved last year. If you bought your painting at a gallery, fair, or art walk, you bought on a ‘personal’ platform, in a retail (primary) market, and now you must think about selling on a digital, secondary market (auction house). Best Advice: ask whoever sells your piece for you to take less of a consignment cut on the sale, if you must sell.