The art market is currently undergoing a period of transformation influenced by generational shifts, economic conditions, and evolving collector preferences.
One notable aspect of this transformation is the strategic approach to collection management. Rather than selling for profit, advisors are assisting clients in refining their collections. This trend is characterized by the practice of deaccessioning, which involves selling lower-value works.
Despite a decrease in art spending among the ultra-wealthy, high-net-worth individuals with assets exceeding $50 million still allocate a substantial portion of their wealth to art collections.
Female artists are gaining recognition and representation in these collections, with a seven-year high in the number of works attributed to women.
Chinese collectors, particularly those from Generation X, are leading in art and antiques spending. This contradicts reports of a slowdown in Chinese buying.
The habits of wealthy collectors have diverged. While there is increased attendance at art events, there are fewer purchases being made.
Remote purchases are becoming more popular, reflecting a growing trend towards digital engagement in the art market.
The anticipated great wealth transfer raises questions about the future of art collections. Millennials and Gen Z collectors may have different tastes and preferences. However, a majority of high-net-worth individuals already possess inherited works and plan to retain or donate them.
Art advisors are acquiring more artworks, particularly those priced under $100,000. This reflects a growing interest in lower-value works.
Purchase prices at auction have decreased, indicating a buoyant market for lower-priced artworks.