Dally said earlier that one person was being treated by St John and crews were searching the property for another person.
Neighbour Michael Rowse was in his living room watching the news when he heard popping noises outside.
"I head our neighbours yelling away. One of them yelled, 'The house is on fire'. We ran outside and saw black smoke and flames. It was all on.
"I heard 'pop, pop, pop'. It sounded like something exploding in the house but I'm only speculating."
Rowse told the Herald he was on the phone to emergency services when he saw someone running around with no shirt on trying to get into the burning house."
"My wife called out to the man saying, 'Get out of the house, get out of the house.' There was another man running around the outside of the place."
Rowse said luckily his neighbours have a large property and the wind was blowing in a direction where the smoke and flames were heading towards the back yard rather than nearby properties.
Diversions have been put in place around the burning home.
Police will be working with Fenz to determine the circumstances of the fire, a spokeswoman said.
A police spokeswoman said officers were assisting with cordons at the corner of Cook St and Rodney St.
