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As others have pointed out, the title question of the original post isn't exactly accurate... as it's only applying to your specific area. Down here in the southern counties, there are still plenty of new homes to be bought for much less than $350K... frankly, my own personal perspective leads me to believe that such a price is ridiculously high! Even so-called "McMansions" are barely touching that level.
Granted, cookie-cutter housing developments are rarely an option here (thank goodness), decent acreage can still be had for well below $100K and there's no reason a nice, newly constructed home should run more than $150-200K.
Also, I don't quite understand this overwhelming *need* to buy a brand-new home, certainly there must be existing homes that can more than suit any need for much more reasonable prices.
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