New-home sales rose 2.7% from August to a seasonally adjusted annual rate of 464,000 homes. Economists had expected sales would drop from the August level.

The median price of a new home sold in September declined by 9.1% from a year ago to $218,400 -- the lowest level since September 2004, when the five-year housing boom was accelerating.

Despite the gain from August, the sales rate was still down 33.1% from a year ago.

Regionally last month, new-home sales were up 22.7% in the West, down 21.4% in the Northeast, down 5.8% in the Midwest and up 0.7% in the South.

The gain mirrors a report last week that the sales of existing homes rose in September by 5.5%, the largest monthly gain in more than five years. The report jumped as lenders aggressively cut prices on homes acquired in foreclosures.

By Charley Blaine and Elizabeth Strott

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