Housing market is one of mechanisms that transfer ownership rights of arnhouse with a combination of different attributes that is defined by its prices.rnThe process and procedure in housing market is complex both for thernsellers or buyers. Market participants lack sufficient information tornundertake transactions. The paper tries to examine the process andrnprocedure of the housing market and show how brokers facilitate thernmarket. The price of the house is not determined arbitrarily. The implicitrnprice of housing characteristics concerning the physical and location ofrnAddis Ababa are examined in this paper. The elements of salesrncomparison of residential house depend on a package of attributes thatÂ· arern, valued by the consumers. A model that incorporate for the quality of thernhouse, age, floor area, size of the plot area, number of rooms availabilityrnof amenities such as market, elementary school etc. is presented andrndiscussed. Hedonic price model is used to estimate the most importantrndeterminant factors. Data is collected from households' that buy residentialrnhouses in Addis Ababa. The result of the study suggested that the price ofrna house has increased tremendously over a short period of time. Mostrnbuyer of a house prefers plot size, older and structurally poor qualityrnhouses. The paper tries to demonstrate the behavior of residential housernmarket consumers given the present housing condition of the city. Thernpolicy implication of this study is that the implementation of the urban landrnand housing policy of the city administration should be accompanied byrnimprovement in the residential house market