What are the essential baby items I need to have in the house?

Various. Check out http://www.Youtube.Com/watch?V=upvuillljlu for some suggestions.
Diapers, bed clothes. It can be overwhelming having a baby and knowing what you need. Most stores are happy to provide you with a list of dozens, sometimes >100, of items you "need." the essentials are a safe crib, diapers, wipes and clothing. If you are bottlefeeding, then formula and bottles, however the hospital will usually provide you with an initial supply. A baby "needs" food, sleep, clean diapers and love.