Silent Hill: Homecoming

I don't think you can/are supposed to go back in the house at that point. Head down to Main Street and you'll get a cutscene.

You have to go to the town hall

Yea go down the street youll get a cut scene telling you to go to doctor flitch. countinue the game from there and you will eventually make it back to the house. be prepaired for a long long puzzle coming up soon

You don't.

Do Dr. Fitch's first, Hell Descent Second, beat Scarlet, Town Hall Next and then emerge out of the graveyard to then go to your backyard.

You have to go to the town hall. Use the key you got in the center room to open the door in the floor. Go downstairs. After you get the ceremonial dagger, walk around that room (you may want to kill the nurses first) until you get a prompt to use the dagger on a section of wall. You will unlock a secret passage that will ultimately lead you to the backyard of Alex's house. I hope this helps.

Ah I see I wa stuck too. The objective kept telling me to go back to the TownHall. Wasted all the ammo and health wandering around outside.

Ok I looked around in TownHall and I couldn't find other way out besides the front door after I received the knife. Do I have to go outside of the building somewhere or there is a hidden exit?

When you got the Town Hall and find the ceremonial dagger turn to your left. Along the wall between the two. When you enter the room with the cermonial dagger it's on the wall directly in front of you. It can be REALLY hard to find since it blends right into the wall. (I wasted a long time to find that.)