On the back of the VHS cover the text reads "It has been five years since Nancy Thompson waged her last battle with Freddy Krueger in that sinister house on Elm street"
But what made the house sinister?
This isn't in the movies but some comics say Freddy lived in the same house Nancy and her mom lived in when he was alive.
shareGoing by the canon of this movie and nothing else, the house had gained some notoriety since Nancy lived there. Grady mentioned a girl going mad there. So the back of the cover probably just meant that the house had a sinister local reputation. This would seem to be true later, when Jesse argued with his dad, about how his dad got the house cheap due to the happening of the first movie.
Later movies referred to this house as being where Freddy had used to live. But I don't believe that was ever mentioned in the first couple of movies.
Freddy's haunted(?) glove was kept there and he was burnt to death for the second time there.
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