Artwork prices are not always the same, even within the same artist’s portfolio. As trends shift, so too can the market value of a specific artist’s work. Therefore, understanding market trends can be crucial to learning art appraisal.
The art market doesn’t operate the same way the majority of other industries do, in that art values depend not only on materials and skill, but also on public interest and demand. As a result, when an artist catches the public eye, through a large show, a museum acquisition, or a record-breaking sale, their market prices may suddenly spike as buyers across the globe enter the market in search of their work. In these cases, an increase in demand generally correlates with an increase in price.
Historical trends can also influence market values. Certain eras tend to become popular when buyers discover art from periods long forgotten, causing the value of art from those periods to appreciate considerably. This has occurred time and time again with decorative arts, vintage design, and regional artists. Consequently, successful appraisers have a grasp of art history and a sense of the changing tastes and interests of collectors and curators.
Auction houses are often a key player in trend development. Because these sales are public, they give valuable insight into how much collectors value a certain piece or category of artwork. When multiple works by an artist sell at auction over a short period, for instance, this trend is often considered a sign of a growing market. A record sale alone does not always indicate a trend, however, as it may not necessarily reflect the value for a specific artist over the long term, so successful appraisers look at the bigger picture.
Over the last several decades, the art market has also grown due to globalization. Today, collectors can easily buy work online, and art and antiques from around the world can be shipped directly to an auction house for sale. This increase in availability has allowed collectors to purchase work that may have once been considered too niche, or out-of-reach, and has allowed art from one region of the world to impact prices and trends in another.
As is the case with nearly every industry, market trends also depend heavily on global economy. A recession, for instance, might cause collectors to be more selective in the type of art they buy, sticking to more established artists whose works can still appreciate, while in times of economic growth, there might be renewed interest in more experimental artists or smaller collectors’ groups. Therefore, appraisers must be sensitive to these shifts so that valuations reflect current market conditions.
Other factors, such as rarity, can also influence art values. If a smaller number of a specific artist’s work is available, for instance, buyers might be more willing to compete for that particular art. This is often the case with historical work or pieces in limited production or connected to a particular event. This, however, doesn’t always equate with a higher price, but when coupled with strong demand, the lack of supply can be a strong driver.
As a result, successful appraisers stay on top of the latest news and trends in the art world. Whether they attend gallery show openings, check the auction results, or follow collector interest on various topics, they understand that there is more than just an object’s price on a given day; they know what has shaped it and why.
As you study art appraisal, you’ll find that the same can be said of art valuation. Just as important to understanding an artist’s technique or the historical period in which a work was created, is understanding the current state of the art market and how that will impact the price of the work.