Art Market Monitor

Global Coverage ~ Unique Analysis

  • AMMpro
  • AMM Fantasy Collecting Game
  • Podcast
  • Contact Us

Guess What? There’s No More Flipping Now Than 20 Years Ago, New York Times Says

August 18, 2014 by Marion Maneker

Stefan Simchowitz

The New York Times has been working on a story about art flipping for some time with the goal of showing through had data what is really going on in the art market. Hiring two different consulting firms, they discovered that the perception of more flipping is a function of greater art sales. Another pass at the question revealed that flipping has been declining since the market’s previous peak in 2008:

“Many buyers today seem eager to buy the ‘new kid on the block’ — the hot, young, talked-about artist — for a low price and, in a short time, put the work up for sale, anticipating to receive a multiple of what they paid,” said Angela Westwater of the Sperone Westwater gallery.

At Israel Lund’s New York solo debut in June 2013, for example, an untitled yellow-and-gray painting sold for $7,500; this May it sold for $125,000 at Christie’s. Similar examples abound for recently created works by artists like Lucien Smith and Oscar Murillo.

But the data indicate that contemporary works appearing at auction within three years of their creation are not coming to auction faster than in the past, and that such flipping remains very much the exception, not the rule. Though more works come up for sale each year, the percentage of these works was essentially the same last year, less than 2 percent, as in 2007, Tutela Capital found.

Beautiful Asset did another review of the art market, using a different measure, and reached a similar conclusion: While, historically, the percentage of works resold within five years is higher now than it was, say, two decades ago, that percentage has been decreasing since 2008.“It reached a high right before and after the financial crisis,” said Michael Moses, a founder of Beautiful Asset, “and it has been declining since.”

Barbarians at the Art Auction Gates? Not to Worry  (NYTimes.com)

More from Art Market Monitor

  • Swann African American = $1.79mSwann African American = $1.79m
  • Do ‘Opaque Deals’ Threaten the Auction Houses’ Principles?Do ‘Opaque Deals’ Threaten the Auction Houses’ Principles?
  • Sally Mann’s Twombly Isn’t Worth $70mSally Mann’s Twombly Isn’t Worth $70m
  • Nitsch, Rotella Lead Sotheby’s €4.4 M. Paris Contemporary Day Art SaleNitsch, Rotella Lead Sotheby’s €4.4 M. Paris Contemporary Day Art Sale
  • Berlin Coming and GoingBerlin Coming and Going
  • Class of 2007: Sotheby’s Imp Mod Eve SaleClass of 2007: Sotheby’s Imp Mod Eve Sale

Filed Under: Collectors

About Marion Maneker

LiveArt

Want to get Art Market Monitor‘s posts sent to you in our email? Sign up below by clicking on the Subscribe button.

  • About Us/ Contact
  • Podcast
  • AMMpro
  • Newsletter
  • FAQ

twitterfacebooksoundcloud
Privacy Policy
Terms & Conditions
California Privacy Rights
Do Not Sell My Personal Information
Advertise on Art Market Monitor
 

Loading Comments...