A young Welcome Bay mother is thankful a large tree stopped a car from smashing into her home where she and her 7-month-old baby were sleeping.

Valle Tracey was at home with her father, brother, partner and baby when her family was woken up by a loud bang at about 3am today.

"We just woke up to a big bang, the whole house moved as well," she said. "It was so loud."

When the 24-year-old got up to see what had happened, she saw a car had crashed through a fence and hit a tree before landing in the front lawn of her rental property.

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"They hit the tree outside our deck, that is what made the house shake. The neighbours thought it was an earthquake," she said.

"We are lucky the tree was there otherwise it would have come right into our lounge."

Tracey said the car had gone right through their fence, causing the wood to smash into the glass ranchslider door.

"There was glass everywhere," she said.

Tracey lives at home with her father, brother, partner and 7-month-old baby and she was thankful no one was hurt.

Nearby resident Jake Sellers said his partner heard a car skidding for a couple of minutes before it crashed.

Sellers said he saw two or three people run from the scene when he went out to see what had happened.

"I caught one of them," he said.

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The car crashed into a tree before landing in the middle of a Welcome Bay home's front yard. Photo/George Novak
The car crashed into a tree before landing in the middle of a Welcome Bay home's front yard. Photo/George Novak

The noise of the crash woke up several residents who had spilled on to the street to see what had happened.

"There were about 20 residents out on the street watching ...There were about seven cop cars here too."

A police media communications spokeswoman said the driver of a stolen car failed to stop for police in Welcome Bay about 3.10am on Sunday.

Police initiated a pursuit but the chase was abandoned after the car was driving at high speed heading into town.

The police located the car a second time and the pursuit continued, but was abandoned again due to the "erratic manner" of the driver.

The spokeswoman said the bright yellow Honda, believed to be carrying four occupants, was followed for about seven minutes before it eventually crashed.

"The driver was taken to hospital to check a head-injury from the crash," she said.

Police again located the car after it was seen crashing through a fence and hitting a tree.

One passenger was found at the scene but two others fled from the crash before the driver was found hiding in a nearby bush.

Police are yet to locate one other passenger.

The driver and other occupants were referred to Youth Aid.