Existing-home sales in the United States took the biggest tumble in 18 years during March as poor weather struck demand.

Meanwhile, U.S. consumer confidence fell significantly in April, with a reverse in consumer optimism about present conditions leading the decline, according to a report released today.

Home resales fell to a 6.12 million annual rate, a 8.4% decrease from February’s revised 6.68 million annual pace, the National Association of Realtors said Tuesday. February’s rate was originally estimated at 6.69 million.

The median home price was US$217,000 in March, compared with US$213,600 in February. The March price was 0.3% below US$217,600 in March 2006.

The 8.4% drop was the sharpest since 12.6% in January 1989. The NAR blamed bad winter weather. “For the last couple of months we’ve been expecting a weather ‘hit’ on home sales finalized in March,” NAR chief economist David Lereah said. The drop in existing-home sales followed three increases in a row. Favorable weather in late fall and early winter had helped elevate demand.

The March home resales level was below Wall Street expectations of a 6.42 million sales rate for previously owned homes.

Inventories of homes fell 1.6% at the end of March to 3.75 million available for sale, which represented a 7.3-month supply at the current sales pace. There was a 6.8-month supply at the end of February, revised from a previously estimated 6.7 months.

Sales fell in all four regions of the U.S. Demand dropped 10.9% in the Midwest, 8.2% in the Northeast, 9.1% in the West, and 6.2% in the South.

Meanwhile, the U.S. Conference Board, a private research group, said its index of consumer confidence for April moved to 104.0 compared with the upwardly revised 108.2 seen in March. It was the second monthly decline in a row.

Economists had expected the April reading to drop to 105.0.

March’s reading was originally reported at 107.2.The present situation index, a gauge of consumers’ assessment of current economic conditions, fell to 131.3 from an upwardly revised 138.5 in March. It was the first decline in six months.

Consumer expectations for the state of economic activity over the next six months slipped to 85.8 in April from an upwardly revised 87.9 the prior month.

“Unlike the decline in March, which was solely the result of apprehension about the short-term outlook, this month’s decline was the combination of weakening expectations and a less favorable assessment of present-day conditions,” said Lynn Franco, director of the conference board consumer research center.