The art market, which reached new heights during the pandemic, is facing a decline in sales and uncertainty following a cyberattack on Christie's auction house. The upcoming spring auctions at major houses like Sotheby's, Christie's, and Phillips are expected to generate $1.2 billion to $1.8 billion in total sales – a significant decrease from the market's peak in 2022 when it generated a record-breaking $2.8 billion.
Demand from buyers remains strong; however, supply is an issue as collectors hold back on selling their trophies for a better market environment. There are no big single-owner collections up for sale this season like the Macklowe Collection or Paul Allen Collections, and fewer pieces with more than a dozen works offered for over $30 million each compared to previous sales.
Christie's website was hacked on May 10, 2024, and as of May 12, it had not yet regained control. The company promised the auctions would proceed in person and by phone despite the cyberattack. With confidential data potentially compromised and online bidding unavailable through the placeholder website set up to access digital catalogs, analysts are uncertain about its impact on buyers and sellers.
The art market has been experiencing a decline since late 2022 when prices began to drop significantly. A recent study by Bank of America Private Bank found that the average price of artworks sold at auction in 2023 decreased by 32%, the largest single-year decline in over seven years.
Brooke Lampley, Christie's head of sales for post-war and contemporary art, acknowledged the challenges facing the market. “We are seeing a more measured approach from buyers and sellers,” she said. “There is a demand for quality works that resonate with collectors, but there is also caution in the market.”
The art world has faced an increasing number of cyberattacks in recent years. In January 2024, a service provider that helped museums host their collections online and manage internal documents was targeted by hackers. Organizations including the Metropolitan Opera and the Philadelphia Orchestra have also faced cyberattacks that hampered their ability to sell tickets online.
Chelsea Binns, a cybercrime expert who teaches at John Jay College of Criminal Justice in Manhattan, emphasized the importance of transparency when dealing with such incidents. “It is best practice for companies to notify the public as soon as possible if hackers might have gained access to sensitive information,” she said.
The art market correction is adjusting price expectations, and women artists are finally getting their due. Sales of works by female artists were up 10% last year to $788m, an increase on top of gains of 29% in 2022 and 55% in 2021.
