Is it really cheaper to buy than to build in my area?

[Jay Staudt]

I keep reading that this is the case (that buying is less expensive than building in the current market), but real estate in my area is expensive. I live just outside D.C., and homes in the suburbs of Northern Virginia are quite pricey. Looking at properties currently on the market in my town (Manassas) shows the average cost/sq ft to be just above $150. There's an undeveloped plot for sale for $69k right in town that has been sitting for a long time and I was considering putting in a low offer or asking for seller financing. It's already got access to city water and sewer. I hear people talking about new home development costing somewhere between $80-125 sq/ft including dirt - then again, the dirt around here is pretty expensive as well. Any thoughts on whether that figure is feasible in this area?