Did you know there is a close relationship between the housing market and art sales? It might seem obvious, but many artists seem to overlook this fact: artists need new homes to be built and existing homes to be sold so there will be blank ‘walls’ on the market to hang art!
For nearly 30 years I have lived in a resort community where I have witnessed the synergy between the housing market and art sales. But, none as dramatic as the years when the real-estate market fell hard from 2007 to 2009, with the crash of the art market following close behind.
Since then I have watched local and national art galleries struggle or even close their doors, and prominent artists toil. Nevertheless, artists are resilient. Just as the awe inspiring cathedrals of Europe rose from the ashes of despair, entrepreneurial artists have taken charge of their own art careers!
These successful artists have learned how to use social media as a free marketing tool. They understand how to balance self promotion while maintaining a healthy relationship with their art galleries. As art business entrepreneurs, they have generated multiple streams of income through many avenues.
There is some good news to report! The housing market is making a modest recovery that is worth noting. Residential real-estate prices rose in the year ending in February 2013 by the most since May 2006, and according to Bloomberg.com, retail sales may also keep getting help from the housing market.
Forbes.com says the improvement we’ve seen recently results from a simple phenomenon: construction of new fewer housing units has been less than the growth of demand. According to the National Association of Home builders, the housing market has held steady and improved. Economists say there are three contributing factors. Demand, low mortgage rates, and affordable house prices.
For artists who are interested in keeping their finger on the pulse, here is the list of Today’s Hottest Housing Markets by 247wallst.com to consider for your business plans.
Today’s Hottest Housing Markets (read more about it at 24/7 Wall St)
10. Denver, Colorado.
This February, more than 5,000 homes sold — an increase of 27% from the same month last year.
9. Detroit, Michigan.
As of the first quarter of 2013, the average home value in the Detroit area was just $84,700, by far the lowest of all the large metro areas in the country measured by Zillow.
8. Los Angeles, California.
The unemployment rate in the Los Angeles metropolitan area was 10.3%, a significant improvement from the 11.6% rate a year ago.
7. Riverside, California.
The Riverside metropolitan area is recovering from the housing bubble burst. Home values are expected to jump 17.2% in the coming year, more than any other large city in the United States.
6. San Diego, California.
San Diego home values have rebounded, increasing 17.1% from the first quarter of 2012 to the first quarter of 2013. This included a 5.5% increase in the past quarter alone.
5. Sacramento, California.
Between the first quarter of 2013 and the same quarter in 2014, Sacramento home values are expected to rise an additional 15.6%, more than any of the other largest 30 housing markets except for Riverside.
4. San Francisco, California.
San Francisco’s home values rose by 21% last year, with 6.4% growth between the fourth quarter of 2012 and the first quarter of 2013. This was among the largest quarterly increases of all large metro areas in the country.
3. San Jose, California.
Construction jobs in the San Jose area grew by 12.3% from February 2012 to February 2013, likely a positive sign for the local housing market.
2. Las Vegas, Nevada.
Las Vegas’s housing market has made a rapid comeback, with home values rising more than 7% in the most recent quarter alone. While values are on the rise again, it may take some time for the area to return to prerecession levels.
1. Phoenix, Arizona.
No other metropolitan area’s housing market has grown faster than Phoenix, where home values rose 24% over the past year. The growth is expected to continue as well.
I hope you enjoyed this post. You can visit my art website, LoriMcNee.com, and let’s meet on Facebook Fine Art Tips Facebook Fan Page, on Twitter, Google Plus and on Pinterest and Instagram. Please be sure to check out my fine art prints and notecards on Fine Art America. ~Lori
(You might enjoy this insightful read, The State Of The Art Market by my good friend, Lori Woodward Simons).