# Hedonic Regression

I have some data for housing prices from sales for given areas and I also have data on several characteristics of these houses. I was wondering if there was a way to construct a simple housing price index using hedonic regression?

$$p_i = X_i^\top \beta + \mu_a + \epsilon_i$$
for the $$i=1,...,N$$ housing sales and then use the area dummy estimates $$\hat \mu_a$$ as index values.