sms that happens alot. Clients will ask me to setup a search and they will be very specific on criteria in some cases. Then they see something on line or another sale that inevitably got filtered out because of thier criteria for the MLS search. It is always better to be looser then tigher on criteria for the search.
As sdr said ppsf measures are non linear and do generally go down with size of the home. Additionally to me they also do not represent condition of the home, lot size, views and or other features that should be considered.
Finally as you know right now you are buying in an overheated market that is extremely competitive AND is severely lacking for quality inventory. So given that situation, you will most likely overpay if you compare the situation to say, 9 months ago. Still though, if you are happy with what you found and it suits your needs, and all the other pieces to the puzzle fit, I would say you are okay.