As records are broken on a regular basis now, most people tend to agree that we have an art bubble.. or at least an art bubble in the Impressionist/Modern/Contemporary market.
Richard Feigen has written an excellent little summary of the art market, a history of our last art bubble, the makings of the current art bubble, and what the future may hold.
It’s definitely a bubble, but when it will burst is anybody’s guess
If a bubble, or bubbles, exist in the fine arts—as opposed to the decorative arts—it is in the highly-touted trendy contemporary market; in the late 19th and 20th centuries; and in markets that appeal to Russia and the newly super-rich Asian countries. The 16th and 17th century Italian, French and Flemings; the 18th and 19th-century British; and the pre-Impressionist French have been forgotten in this inundation of liquidity into the art market. Art Newspaper
Speaking of records, a Velázquez painting has just sold at a Sotheby’s auction in London for £8,420,000 ($17,003,348/€12,472,564). This is a record for the artist. See a picture of the painting at ArtDaily.