The recent boom in new home construction has finally begun : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 23 Jan 2017, 23:12

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The recent boom in new home construction has finally begun

Author Message
TAGS:

### Hide Tags

Verbal Forum Moderator
Joined: 23 Oct 2011
Posts: 283
Followers: 36

Kudos [?]: 751 [0], given: 21

The recent boom in new home construction has finally begun [#permalink]

### Show Tags

28 Apr 2012, 20:22
2
This post was
BOOKMARKED
00:00

Difficulty:

75% (hard)

Question Stats:

46% (02:11) correct 54% (01:07) wrong based on 522 sessions

### HideShow timer Statistics

The recent boom in new home construction has finally begun to taper off. Developers are not
buying land, contractors are finding themselves going without work for longer periods, and
banks are issuing fewer mortgages. People must not be as interested in buying new homes as
they were even six months ago. Which of the following indicates a flaw in the reasoning
above?
A) Interest rates for home mortgages have increased significantly over the past six months.
b) The average size of a new home has increased significantly over the past several years.
c) Sales of condominiums have increased over the past six months.
d) The cost of materials such as lumber and cement has decreased over the past year.
e) Sales of other big-ticket items, such as automobiles and boats, has remained steady over the
past year.

[Reveal] Spoiler: OA

_________________

********************
Push +1 kudos button please, if you like my post.

If you have any questions
New!
Manager
Joined: 22 Apr 2013
Posts: 95
Location: India
Concentration: Finance
GMAT 1: 660 Q48 V33
Followers: 1

Kudos [?]: 68 [3] , given: 32

Re: The recent boom in new home construction has finally begun [#permalink]

### Show Tags

15 Oct 2013, 01:28
3
KUDOS
jlgdr wrote:
GetThisDone wrote:
The recent boom in new home construction has finally begun to taper off. Developers are not
buying land, contractors are finding themselves going without work for longer periods, and
banks are issuing fewer mortgages. People must not be as interested in buying new homes as
they were even six months ago. Which of the following indicates a flaw in the reasoning
above?
A) Interest rates for home mortgages have increased significantly over the past six months.
b) The average size of a new home has increased significantly over the past several years.
c) Sales of condominiums have increased over the past six months.
d) The cost of materials such as lumber and cement has decreased over the past year.
e) Sales of other big-ticket items, such as automobiles and boats, has remained steady over the
past year.

Wow, can't believe I got this one wrong. But well, let's see. My reasoning was..

First, the conclusion: "People must not be as interested in buying new homes as they were even six months ago" because of X,Y,Z in the stimulus.
Now what I thought inmediately after seeing (A) was it is not that people are not as interested in buying new houses, maybe they are but it is more expensive now, so they can't afford it. So (A) indicates a flaw in the argument.

Now answer (C) seems like a nice choice, but still, I wonder what is wrong in my reasoning...
Thanks

I am no expert but I an try and differentiate why C is a better choice than A.

A) Interest rates for home mortgages have increased significantly over the past six months. ---- Interest rates for home mortgages have increased does indicate a flaw but not as explicitly as option C. But you have to assume that the people interest depends on the interest rates. I think this is not stated anywhere in the argument and hence a bit too much to assume. It is not necessary that people buy homes with the help of a home mortgage.

C) Sales of condominiums have increased over the past six months.---- This directly indicates the flaw because if the sales of condos have increased more people are still interested in buying new homes. Perhaps there is are a lot of available apartments in the market right now so people are still interested in buying houses. An excess supply could also be a reason why developers are not buying land and contractors are out of work. And perhaps people do not need banks to buy condos.
These were all just hypothetical situations but it shows that if people are buying condominiums, they are still interested in buying new homes.

And of course B, D, E are out of scope.

Hope this helps.
Manager
Status: Bunuel's fan!
Joined: 08 Jul 2011
Posts: 242
Followers: 1

Kudos [?]: 40 [0], given: 55

Re: CR - Weaken - # 12 [#permalink]

### Show Tags

07 May 2012, 09:29
A) Interest rates for home mortgages have increased significantly over the past six months.--- Strengthen the argument
b) The average size of a new home has increased significantly over the past several years.-Not relevant
c) Sales of condominiums have increased over the past six months.-Hold, this proves that people still want to buy condos
d) The cost of materials such as lumber and cement has decreased over the past year.-Very tempting but it does not have a strong connection with the premises as in choice c
e) Sales of other big-ticket items, such as automobiles and boats, has remained steady over the
past year.-Not relevant

Thus choice c is an answer.
Current Student
Joined: 06 Sep 2013
Posts: 2035
Concentration: Finance
GMAT 1: 770 Q0 V
Followers: 62

Kudos [?]: 594 [0], given: 355

Re: The recent boom in new home construction has finally begun [#permalink]

### Show Tags

11 Oct 2013, 11:45
GetThisDone wrote:
The recent boom in new home construction has finally begun to taper off. Developers are not
buying land, contractors are finding themselves going without work for longer periods, and
banks are issuing fewer mortgages. People must not be as interested in buying new homes as
they were even six months ago. Which of the following indicates a flaw in the reasoning
above?
A) Interest rates for home mortgages have increased significantly over the past six months.
b) The average size of a new home has increased significantly over the past several years.
c) Sales of condominiums have increased over the past six months.
d) The cost of materials such as lumber and cement has decreased over the past year.
e) Sales of other big-ticket items, such as automobiles and boats, has remained steady over the
past year.

Wow, can't believe I got this one wrong. But well, let's see. My reasoning was..
First, the conclusion: "People must not be as interested in buying new homes as they were even six months ago" because of X,Y,Z in the stimulus.
Now what I thought inmediately after seeing (A) was it is not that people are not as interested in buying new houses, maybe they are but it is more expensive now, so they can't afford it. So (A) indicates a flaw in the argument.

Now answer (C) seems like a nice choice, but still the problem is that we can't actually assume that these condos are new homes, if they are existing ones then it does not weaken the conclusion at all

I wonder what is wrong in my reasoning...
Thanks

Last edited by jlgdr on 03 Mar 2014, 12:24, edited 1 time in total.
Director
Joined: 23 Jan 2013
Posts: 579
Schools: Cambridge'16
Followers: 1

Kudos [?]: 42 [0], given: 40

Re: The recent boom in new home construction has finally begun [#permalink]

### Show Tags

15 Oct 2013, 00:05
It looks like weakening question, why is it placed as "flaw". It must be trick of developer. I also chose A
Manager
Joined: 25 Oct 2013
Posts: 173
Followers: 1

Kudos [?]: 56 [0], given: 56

Re: The recent boom in new home construction has finally begun [#permalink]

### Show Tags

07 Feb 2014, 00:25
Interesting. I also selected A over C because C does not contradict the underlying assumption, it contradicts the conclusion itself. Which is little bit weird for a CR flaw question.

_________________

Click on Kudos if you liked the post!

Practice makes Perfect.

Intern
Joined: 09 Jun 2014
Posts: 13
Followers: 0

Kudos [?]: 0 [0], given: 4

Re: The recent boom in new home construction has finally begun [#permalink]

### Show Tags

14 May 2015, 10:01
What is the conclusion in the argument?
As per me it should be The recent boom in new home construction has finally begun to tapper off and assumption is people must have become less interested in buying homes.
GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10543
Followers: 920

Kudos [?]: 204 [0], given: 0

Re: The recent boom in new home construction has finally begun [#permalink]

### Show Tags

27 Sep 2016, 03:33
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: The recent boom in new home construction has finally begun   [#permalink] 27 Sep 2016, 03:33
Similar topics Replies Last post
Similar
Topics:
4 Recently ApexCo has begun drilling off the coast of Mycondia. In this 6 07 Aug 2015, 14:14
1 Weaken Revision: A recent survey conducted in the New Homes 0 18 Feb 2015, 22:55
1 A recent survey conducted in the New Homes magazine 4 28 Apr 2012, 20:11
2 A recent survey conducted in the New Homes magazine 9 26 Jan 2012, 18:29
11 Reporter: A team of scientists has recently devised a new 32 24 Dec 2009, 09:30
Display posts from previous: Sort by