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Christie's and Sotheby's (BID) were only able to pull in a combined $482.3 million on five high-profile art evening auctions in New York and London this year -- down 75% from 2008. Last year, the same collection of flagship auctions was good for $1.97 billion, which was off from the $2.4 billion record set in 2007. This year's performance still lags 2006's $1.1 billion aggregate tally.
From 2003 through 2007, the contemporary art market grew by a factor of eight, according to data from ArtPrice, yet the fun came to an abrupt halt in the fourth quarter of last year, thanks to the collapse of Lehman Brothers and the near-collapse of American International Group (AIG), which Sotheby's losing $50 million and Christie's $40 million, as pieces were unable to reach the prices guaranteed to sellers by the auction houses (a practice which has since been abandoned).
Through the first six months of 2009, no single piece reached the $10 million threshold, a vast departure from the records set easily in the first half of 2008. Through the end of June, the top sale was for David Hockney's 1966 painting, "Beverly Hills Housewife," which brought in $7.9 million at Christie's.
Private art sales executed through the auction houses performed better than the auctions themselves at Christies, while Sotheby's wouldn't comment for Bloomberg News.
Some strong art auction performances over the past few weeks have allowed art collectors, investors, dealers and auction houses a little room for optimism, but the direction is far from assured. It will take time -- and more results -- to determine whether the art market really is recovering.
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