Three people inside Sydney home that was wrongfully shot at left 'incredibly traumatised'

The occupants of a home wrongfully targeted in a drive-by shooting in Sydney's north-west are "unbelievably uninjured" but "incredibly traumatised," NSW Police have said.

Three people not linked to any organised crime groups were asleep inside the home in North Kellyville when bullets sprayed the property at 11pm yesterday.

The glass balcony was shattered and bullet holes damaged the front door of the two-storey home.

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Neighbours said they heard about 10 shots ring out .

Two men aged 44 and 18 were home at the time, as well as a 48-year-old woman.

NSW Police Superintendent Naomi Moore said the trio were not known to police, and investigators believe the wrong home was targeted.

"People are entitled to live in their homes, not in fear," she said.

"These people have been targeted wrongfully, their lives have been turned upside down overnight."

Early reports have suggested that someone well known to police was living in the home, but had moved out two weeks ago.

Moore said there was a second home in the vicinity that had been previously linked to criminal activity.

"There are other premises in that vicinity that may have had other issues in the past," she said.

"Whether or not this house was the wrong target and the other one was supposed to be targeted, that will form part of our investigation today."  

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Fifteen minutes after the shooting, emergency services found a car on fire on Watergum Close in Rouse Hill.

The fire is being treated as suspicious, and detectives believe the two incidents are linked.

Moore said police were still working to get information about the car, but investigators think the occupants could have fled into a nearby reserve on foot.

Anyone with any information is urged to contact Crime Stoppers.