Originally Posted by
Nerfworthy
It's basically a place for you and your friends to chill, inside or outside of the house. They are built like neighborhoods, where you can run around and check out other people's houses as well. You can decorate the outside and inside as well with things you craft yourself, or buy from the market. It's most definitely a place you can display your "trophies" (crafted items using materials only gained from raid bosses for example!). However it has no real impact on anything you do in the game if you don't own a house! It's just for funsies. :)
Edit: Almost forgot! Welcome to the game. I also came from WoW. It's better over here, trust me. ;)