As I had written in my early January 2012 Newsletter, with the economic concerns in Europe, more anticipated foreclosures, there will continue to be an affect on the U.S. real estate market. News this week from London, France and the continuing turmoil in Greece all will have an economic trickle down affect here be it in the financial market, the art market or finally the (local) real estate market…
That being said, it was reported at this year’s Christie’s Real Estate Conference on February 13th, just as the economic market affects real estate (unless you are that privileged immensely wealthy percentage and you can afford those higher priced properties and works of art), it would also seem that while there is a little bit of fractioning in the high end art market (such as the immensely successful Elizabeth Taylor auctioned works or art and jewelry which sold for a record 156 million dollars), the art market is truly global, and when certain pieces or art are desirable, it makes no matter whether the auction is held in London or New York. The buyers will come.
Dr. Paul R. Provost, Deputy Chairman at Christie’s, & Senior Vice President Director of Trusts, Estates & Appraisals at Christie’s New York commented on Monday that Impressionist and Modern Market art was down in 2009, up again in 2010, and slightly down in 2011, totally reflecting the global market… The same with Post War and Contemporary Art. It was extremely in demand in 2007, not as sought after in 2009, up in 2010 and slightly down in 2011.
The interesting point is that American Paintings and Sculptures are considered more “local” and not as saleable right now as Impressionist, Modern Market, Post War & Contemporary art. Some 140,000,000 Million of American Art & Sculputes were sold in 2007, 60 Million in 2010 and approxiately 40 Million in 2011. Once again, reflecting global demands. Just as London is in demand for real estate 2011 and now due to the upcoming Diamond Jubilee and the Olympics, when “energy” was being touted the other year, an American Western landscape brought forth some 20 Million Dollars at an auction.
It would seem that Asian Art sales were around 400 Million in 2009, and 875 Million in the 2010 -2011….
SO, just as certain real estate markets are continuing to perform well due to demand such as in Montreal, Toronto, Vancouver, London, Paris, Geneva and Hong Kong as I mentioned in my 2/14 post, the global market reflects trends, demands, and our local real estate is affected too – in being, well – local….
As we state to all of our clients and customers, real estate is always local, and no matter what we hear on those wondrous sales in the city, Jackson Hole or beyond, or those disastrous sales in California, etc. when it comes down to estimating the price of a home, we must always look to what has been selling in the area, the zip code, and then the same elementary school and finally the street.
Larchmont is great!