Legend

Yellow: Key Items
Purple: Mini-game
Red: Main area of interest

You cannot enter the house because there is something blocking the way. There is an item you got from The Jazz Pepper Club that you can combine with something that you can get from one of the key items. Go back to the door, you still can't open it but the item you created can now be used in retrieving a pipe wrench.

You can use the pipe wrench in fixing the fire hydrant so that you can gain access to the yard sale booth. You are going to be subjected into another pixel-hunting galore. Completing this part will earn you an item that could get the obstruction to the door out of the way.