Art auctions paint a dreary picture

November 8, 2008

NEW YORK - This week's impressionist and modern-art auctions in New York erased any doubt that the global financial tumult has bruised the art world, as results fell 39 percent short of presale low estimates.

Christie's International and Sotheby's sold about $418 million in artworks over three nights, below their combined low estimate of $682 million. The total was off about 37 percent from $665 million a year ago, even after Christie's added an unusual second evening auction. Tallies for both years omit day sales.

At Christie's Thursday night, 44 percent of the 82 lots didn't move. The $146.7 million auction was almost $100 million short of its low estimate.

"Obviously, prices have changed," auctioneer Christopher Burge said after the sale. "We'd be foolish not to recognize that."

With Christie's owner, French billionaire Francois Pinault, in a sky box and former Walt Disney Co. Chief Executive Michael Eisner in the front row downstairs, second- and third-rate works that might have been snapped up in past seasons flopped.

Henri Matisse, Claude Monet and Alexander Archipenko found little or no interest. Collectors felt no urgency to vie for anything less than stellar, especially at prices that seemed suddenly steep, dealers said. "Before, people were willing to overpay," said dealer Christophe Van de Weghe. "Not anymore."

A sale the previous night at Christie's set the stage for low expectations. On Nov. 5, artworks of philanthropist Rita Hillman and real estate heiress Alice Lawrence fetched $47 million, less than half the low estimate of $103 million. On Nov. 3, Sotheby's impressionist sale tallied $223.8 million, one-third below the $338 million low estimate.

Sagging prices did entice Phoenix real-estate developer Lee Hanley to buy an 1882 landscape by Monet. He paid $1.7 million, below the presale low estimate of $1.8 million.

BLOOMBERG