Recently in City X, developers have stopped buying land

[Amit]

Recently in City X, developers have stopped buying land, contractors have found themselves going without work for longer periods, and banks have issued fewer mortgages. There must be fewer new residents moving to City X than there were previously.

Which of the following indicates a flaw in the reasoning above?
This year several housing blocks have gone on the market after being held up for months by legal red tape.
The average size of a new home has increased significantly over the past several years.
Re-sales of condominiums have increased over the past six months.
The cost of materials such as lumber and cement has decreased over the past year.
Sales of other big-ticket items, such as automobiles and boats, has remained steady over the past year.


Why is C invalid?

Explanation says "The argument centers on new homes, so re-sales of condominiums are not directly related." What if new residents are buying old condos this could also lead to the above flaw.

Thanks
Amit

[rfernandez]

This question has been discussed previously. It's always a good idea to search the forum before posting ... your question may already be there.

Follow these links:

http://www.manhattangmat.com/forums/post12334.html

http://www.manhattangmat.com/forums/cit ... t2132.html