At about 8pm tear gas was fired into the house.
Police cleared the property and discovered the man was not inside.
Mr James said the AOS were stood down and police were unable to locate the man.
Two firearms were recovered from the house and a scene guard was in place at the property overnight.
The man was described by residents as "stubborn", having a dislike for police and possibly gang affiliated.
"The man is known to police and we believe firearms were involved," Mr James said.
An associate of the man at the scene earlier said he was worried that if police entered the house the man would shoot.
"He does have a temper when it comes to police but with family it's a different story. I'm just relieved that he wasn't there I'd hate to think what could have happened."
At the time of going to print last night, police were still searching for a 49-year old European man, believed to be the occupant of the address.