Sq foot prices are VERY difficult to compare. Custom vs. spec homes, exterior finishes, interior quality of materials make a huge difference. Many if not most builders will skimp where you don't see it, but will make a huge difference down the road. Crap like builder grade switches, light fixtures, furnace, vents, all that stuff adds up.

Our home was Amish built, top of the line on everything you CAN'T see (upgraded framing dimensions, increased wall and footer, much better waterproofing of basement, foam insulation) and moderate upgrades on stuff you can see (all hardwood no carpet, nice fixtures, soapstone countertops and built in appliances, nice crown molding in public areas, but no imported marbles, garage and exterior doors were well insulated but metal and thus fairly inexpensive)

We ended up just around $130 sq ft, but that was about 8 years ago - since then some materials costs have risen significantly, but of course now most builders are hurting for business.

Personally I would be VERY wary of buying 90% of the homes built in the last 10-20 years. Many of them were slapped up with substandard technique and materials and will be rotting out from water damage (unless you live in the southwest). A personal friend of mine got burned on a $750,000 house that when I looked at it was already having structural issues just 3-4 years after it was built.

Get a subscription to Fine Homebuilding magazine and the Journal of Light Construction, both are must-reads for those considering building a home. You =MUST= know a lot about building or you will get taken for a ride by most homebuilders.

In this market, I'd personally look for an older home (50+ years) in a good neighborhood and get a great deal on it, then fix it up. The bones will be better than most of what you get today, and you'll probably save money.