"A group of similar age then raised the alarm at a nearby Burrows Pl address and banged on the doors and windows to wake up the elderly woman who was home alone in the house that was on fire," Mr Smith said.
"Of further concern to us was the discovery of an empty wine bottle next to the spent firework indicating alcohol may have played a factor in some of the decision-making around where to set the device off."
He praised the actions of the group who alerted the elderly woman but Mr Smith said police were concerned about the serious nature of the incident and wanted to speak to anyone who was involved or saw what happened.
Neighbour Arron Gough said this morning he awoke to the sound of emergency services at the house.
Mr Gough said the woman left the house with a friend and had not returned.
He said he had seen a group of teenagers further down the street lighting fireworks about 9.30pm.
"There was quite a few lighting fireworks in the middle of the road."
Mr Gough wanted fireworks banned.
"They're dangerous bloody things. I don't know why they don't ban them."