Who knew with all the economic crisis issues that these tough times will provide more opportunities! That's really good to know especially for new upcoming artists. After half a decade of unprecedented growth, the art market has been brought back to earth. Recent results from London contemporary auctions confirmed the fear that the art market is in for a correction. A total of £51m was raised in the evening sales, against a low estimate of £105m (51% below the low estimate). A total of 15 lots were sold for a discount of 30% to 60% of the low estimate, signalling that a major price adjustment is underway for a number of artists. So was this a surprise? In November 2007, the ArtTactic Art Market Confidence Indicator fell 40%, signalling a significant change in sentiment from the previous reading in May 2007, largely caused by a gloomy outlook on the economy. The correction started in autumn 2007, but record volumes and prices at the top end of the contemporary art market disguised the fact that the trouble had already started further down the value chain. The first real sign that the art market was feeling the heat of the financial crisis came on 8 November 2007. The impressionist and modern sale in New York took in just under $270m, falling short of its low pre-sale estimate of $355m. The sale sent Sotheby’s share price down 28%, a slide that has continued until today—reducing Sotheby’s market capitalisation to $580m, down from $4.2bn a year ago.
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