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# The recent boom in new home construction has finally begun

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

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28 Apr 2012, 21:22
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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

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

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07 May 2012, 10:29
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.
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Re: The recent boom in new home construction has finally begun [#permalink]

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11 Oct 2013, 12:45
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, 13:24, edited 1 time in total.
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Re: The recent boom in new home construction has finally begun [#permalink]

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15 Oct 2013, 01:05
It looks like weakening question, why is it placed as "flaw". It must be trick of developer. I also chose A
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Re: The recent boom in new home construction has finally begun [#permalink]

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15 Oct 2013, 02:28
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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.
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Re: The recent boom in new home construction has finally begun [#permalink]

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07 Feb 2014, 01:25
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.

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

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14 May 2015, 11:01
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.
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Re: The recent boom in new home construction has finally begun [#permalink]

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27 Sep 2016, 04:33
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Re: The recent boom in new home construction has finally begun [#permalink]

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01 Mar 2017, 03:41
The kind of options given to us suggest that the question stem is incorrectly worded. It should have been which of the following, if true, will weaken the argument.

A) Interest rates for home mortgages have increased significantly over the past six months.( Wrong Answer : This option is only obliquely connected to the argument. This option suggests that those buyers who would wish to mortgage one of their houses to buy another house would be discouraged from doing so. But this option doesn’t say anything about the other types of buyers.)
b) The average size of a new home has increased significantly over the past several years.( Wrong Answer : This option only talks about those buyers who are planning to buy a new house because their existing house is not big enough to accomodate all the family members. But this option doesn’t suggest anything about those buyers who buy houses for reasons other than the one suggested above.)
c) Sales of condominiums have increased over the past six months.( Right Answer : This option weakens the argument by providing an alternate cause for the effect to take place.)
d) The cost of materials such as lumber and cement has decreased over the past year.( Wrong Answer : This option doesn’t affect the argument.)
e) Sales of other big-ticket items, such as automobiles and boats, has remained steady over the
past year.( Wrong Answer : This option is irrelevant to the argument at hand.)
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Re: The recent boom in new home construction has finally begun [#permalink]

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02 Mar 2017, 11:54
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.

Option C is correct since the option C says sales of condominiums have increased. so its not the case that the industry is going down but people are prefering condominiums over other housing structures.
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Re: The recent boom in new home construction has finally begun [#permalink]

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10 May 2017, 12:10
Option (A) is a weaken-er. Answer choices for finding flaw do not introduce new information.
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Re: The recent boom in new home construction has finally begun [#permalink]

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11 May 2017, 02:34
If sales of condominiums have increased over the past six months, the following would not be true.

"Developers are not buying land, contractors are finding themselves going without work for longer periods, and banks are issuing fewer mortgages.".

So, option A is correct.
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Re: The recent boom in new home construction has finally begun   [#permalink] 11 May 2017, 02:34
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