It's not hard to find repos at $60, $70 or $80 a sq/ft in the IE. Its a little harder to find new homes in this price range. Most builders are into the land for far too much to sell homes for that price. It's easier for them to pack up and leave the dirt.
Standard Pacific has listed some in the high $70s sq/ft. Location, you ask. As expected it's out in the boonies. It's in Beaumont on the new golf courses (the ex-SCPGA course). These homes were selling in the $400 to $500k range a couple of years ago. The area is littered with REOs and Short Sales. Most of these are also in the $60 to $80 sq/ft range. So the builder had little choice if he actually wanted to get rid of these homes.
Since I talking about this tract, I should mention one of the most delusional listings in the IE is here. 35820 Stockton St. This home is a full on amusement park (in a tacky kinda way). The guy has the waterfall, the brook, the fake grass putting green, you name it, it's in his back yard. This poor sucker paid a whopping $705k for this place in mid 2006. Yes, you read that right $705k for a tract home in BEAUMONT! That's like paying a million for a vacation home in Chernobyl.
He's obviously under heavy sedation because he has listed it for $829K! Everthing around him is going for $70 sq/ft he's going for $240 sq/ft!
Check out the rubber ducky!