I just created a house today, and by mistake clicked hospital and that's what you see in lower centre
Nah. you need that hospital.
What you don't need are the other houses. Stick with the default 6 houses for now, upgrade them to at least level 5 before building new ones.
Get started on upgrading all your production buildings to level 3.
Get rid of the 2 production buildings beside the market, build a police station and fire hall
No offence, but your town is a bit messed up right now :/