BofA Art Market Update Anticipates Buying Opportunities for Collectors This Fall

Market Overview - The current market correction, which began in 2023 due to global geopolitical unrest, high inflation, and rising interest rates, has continued into 2024, affecting collector confidence and enthusiasm [1] - The market is characterized as a "buyer's market," with fewer masterpiece works being offered, leading galleries to face the choice of adapting to new realities or risking unsold inventory [1] Collector Behavior - Collectors are becoming more discerning, leveraging knowledge of negotiable terms to secure favorable transaction conditions, such as skipping waitlists and obtaining price discounts [1] - There is strong interest in specific collecting categories, particularly in the Latin American and Latin diaspora artists market, which has seen an 18% year-over-year sales growth and is expected to continue into 2025 [2] Art as an Asset - Collectors increasingly view art as part of their wealth management strategy, with the estimated value of art and collectibles projected to exceed $2.8 trillion by 2026, constituting about 11% of ultra-high-net-worth individuals' portfolios [2] - Interest in art as an investment is expected to grow as younger generations build and inherit wealth [2] Additional Insights - The Art Market Update Fall 2024 report includes evolving trends in the art market, wealth planning insights, and interviews with artists and curators [3] - The Bank of America Art Conversation Project has conserved over 260 important artworks since 2010, highlighting the institution's commitment to preserving cultural heritage [4]