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If none of this works we may have to gather House Party logs to see if you're getting any really specific errors.
Have you tried plugging in a USB headset or some basic headphones prior to starting the game via Steam, assuming your system has the appropriate port(s)?
You may also want to unplug any extra peripherals you have connected (webcams, microphones, etc.) to verify they aren't interfering with the audio.
To rule out some weird Steam interference you could also just navigate to your application install directory (generally C:\Program Files (x86)\Steam\steamapps\common\House Party) and run HouseParty.exe as an Administrator directly. To do this right-click on HouseParty.exe and Run as Administrator.
The only other thing I can think of is if you look at the launch properties for House Party in Steam...if a '-nosound' type parameter has been defined that might cause an issue, although it's never added by default and serves no real purpose for us AFAIK.
If you've thoroughly looked through the steps directly above and in my previous post, it's likely a wonky configuration issue that may only be resolved by intense Google-Fu. It could be any number of other media applications, a hyper-aggressive anti-virus or security program that I'm not aware of, or even a system issue or a form of malware.