A home is a place you will hopefully spend many happy years in, so don't buy one based on price alone. Stay within your budget and what you and your financial institution feel is comfortable (and that you qualify for). Then go out and look for homes within that budget - brand new or lived-in - and select the one that appeals to you the most. Buyers generally make a decision based on what their heart - not their head - tells them. A good Realtor will help you with the important "head" part (location advantages, giving you comps, pointing out construction quality pluses and negatives you may have not seen, etc.), but the "heart" part is something only you can factor in. A decision should be based on what your head knows AND what your heart feels.
Enjoy the process, and good luck!