The current market correction, which began in 2023 with global geopolitical unrest, high inflation and interest rates affecting collectors, has spilled into 2024. Less marquee estate property in the May sales potentially also dampened bidders' confidence and enthusiasm. Fewer masterpiece works are being offered in what has widely been viewed as a "buyer's market."
Galleries face a critical choice: adapt to the new market reality or risk accumulating unsold inventory. "Collectors are more discerning than ever," said Drew Watson, Head of Art Services at Bank of America Private Bank. "They know that galleries continue to sell A+ works, but that terms are more negotiable on everything else. Collectors are using that knowledge to secure more favorable transaction terms: including skipping waitlists, eliminating resale restrictions and 'buy one gift one,' and of course, price discounts.
While some auction prices soften and bidder competition wanes in some areas of the market, the report indicates strong collector interest in certain collecting categories, for example, the Latin American (LATAM) and Latin diaspora artists market, which is expected to carry into 2025. Sales in this sector have grown by 18% year over year and show no signs of slowing based on recent market activity and institutional support.2
"Latin American artists have seen strong buyer interest and sell-through rates so far this year," Watson said. "We saw multiple record-breaking auction sales in the spring, and biennales and art fairs have become key primary market platforms."
Report findings also show that collectors increasingly view art as an asset that is part of their overall wealth management strategy. By 2026, the estimated value of art and collectibles is expected to surpass $2.8 trillion and make up approximately 11% of the portfolios of ultra-high-net-worth individuals.3 Interest is only expected to grow as younger generations build and inherit wealth over the coming years.
Access the full Art Market Update Fall 2024: Opportunity Knocks? report to read more about evolving trends in the art market today, including key wealth planning insights, an in-depth interview with artist Amanda Phingbodhipakkiya, a discussion with Jennifer S. Brown, curator of Bank of America's corporate collection, and a look at the Bank of America Art Conversation Project (ACP).
Since 2010, the ACP has helped conserve over 260 critically important paintings, sculptures, archeological and architectural works in danger of deterioration. More information about this year's recipients can be found here: Grants to Preserve Historic Art Awarded in 11 Countries by BofA.
Bank of America
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1 ArtTactic, "RawFacts Auction Review First Half 2024."
2 The Art Basel and UBS Global Art Market Report 2023.
3 Deloitte Art and Finance Report 2023.
SOURCE Bank of America Corporation
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