It depends mostly on the humidity of the air but the temperature comes into it as well.
Condensation will be observed when the temperature of a body of air is cooled below its dew-point - the point at which it is saturated and connot hold any more water as a vapour. The air from your lungs is close to body temperature and almost saturated with water vapour.
If the outside air is very cold (say near freezing) then it is almost certain that the breath will be cooled below its dew-point and you will see the condensation.
If the atmospheric air is very much warmer it can naturally hold much more water vapour but if it is at saturation point already (100% humidity), it cannot hold any more vapour and your breath will become visible as you describe.