Local resident Mary Hart said she heard screaming coming from the property where the stabbing took place.
She initially thought it was children playing in a nearby park but could not find anyone there when she went to check. The sound carried on for 10 minutes, she said.
"It was the kind of screaming you'd hear from children on the swings at the park. They're screaming because they're excited but because it's quite terrifying too."
She had lived in the area for 30 years and had never seen another serious violent incident, she said.
"It's just sad that some people think that's the only way to sort things."
Mr Vaughan said the stabbing was a suspected family violence incident.
He said police would be carrying out a scene examination and interviewing witnesses this afternoon.
The body of the dead woman was yet to be identified and a post-mortem was likely to be carried out this weekend, he said.