You can buy an existing house for $500-600/sqft right now. No aggravation; less hassles. Once you've got the house and lived in it for 6 months or so, think about the upgrades that you could do for only $150-200/sqft. In the end, you get more house, have less hassles and you sleep better at night.
I would not recommend building if PRICE is your only consideration.
Especially considering the smorgasboard laid out before you.
You should visit some of the available properties and then make your decision.
That all depends on the square footage, location, size and condition of the lot, number of levels, quality of finishes, etc... Do you have specific needs that are not readily found in existing properties or would be difficult to incorporate in a remodel? I need more specific information to provide an answer.
Paragon Real Estate Group
CA DRE 01844627