A Bell St resident, who did not wish to be named, said the dead woman was a "lovely lady'' who had lived at the house for about two years.
She believed the woman was in her late 60s.
Police believe they know who the woman is but need to formally identify her and notify next of kin.
Detective Senior Sergeant Greg Turner said it would be wrong for him to speculate about the cause of the woman's death yet.
"The investigation is in its very early stages, the scene is still to be examined and a post-mortem will need to be held.''
Police were speaking to witnesses.
Part of Bell Street remains cordoned off and a tent has been put up to preserve the scene for a forensic examination tomorrow.
The woman's body will be removed and a post-mortem examination will be carried out once the scene examination is complete.
Police said the scene would remain under guard overnight and processes were in place to give residents access their homes.