That's about right. Where I live right now (Eastern Ontario) is basically the same as NB (I'm from there). It's really cheap still and I don't get why more people don't move here, it's so close to Montréal and Ottawa (45 minutes train commute). So in the end, you don't have to move to another province get good house prices, you just need to look more.^ While there a lot of variables (serviced, zoning, location, etc.), a quick scan of Fredericton listing seems to suggest a 'typical vacant lot' goes for in the area of $50-60K. I imagine a vacant residential building lot in Toronto, should one exist, might be a tad more.
Again, a lot of variables, but the Interweb suggests that it costs about $150/sf to build a new house in NB (stock plans), so a 'typical' 2000sf house could be put on a 'typical' lot for about $300K. Of course, per any bubble that is going on down there, and pre the current spike in building material costs.