Scott Reyburn carries the reactions from the buyers and dealers at last night’s sale:

“They got the supply side just right. After this, people should feel more confident about consigning works to auction,” said London-based dealer Robert Sandelson. Sotheby’s “made the things they had look special and they adjusted expectations.”

The auction steadied nerves in what was the first test of demand for contemporary art this year. Prices fell in the quarter as the latest — and worst — bout of credit crisis unfolded, wilting wealth and art purchases. Now, dealers say the fewer lots, a cheaper pound and lowered reserves are spurring demand. “We curated a smaller sale and achieved a higher selling rate,” said Cheyenne Westphal, Sotheby’s European head of contemporary art. “We now know where 2009 is starting from.” [ . . . ]

“A lot of people were nervous about selling art,” said Philip Hoffman, chief executive of the London-based Fine Art Fund. “They just didn’t know what was going to happen. Everyone was wondering how (the Sotheby’s) sale would go, but there were at least two bidders on pretty well everything.”

Koons, Fontana Works Sell in Smaller London Art Sales (Bloomberg)