A terrified family say they have been forced to move after a masked group fired shots into their home in south-west Melbourne.

Three people, armed with a machete, gun and what appeared to be a hammer, smashed through the windows of a home on Powlett Street in Werribee about 9pm yesterday.

CCTV showed them firing shots into the home, one of which narrowly missed a 23-year-old man who was asleep in his bedroom.

The trio then made their way into their silver sedan and fled the scene.

Inside the home, the family of six hid in their bathroom. The entire ordeal played out in less than a minute. 

9News understands a teenage boy living at the home was the target. 

Neighbours who heard the commotion said they were left terrified.

“When hearing this sort of stuff goes on in your local neighbourhood, you’re petrified about it,” Earle Boulter said.

“I was actually pretty scared to be fair. I’ve never been around violence or anything, so it’s a wake-up call,” Caleb Vincent said.

The family has lived at the home for five years but are now too scared to stay there.

They said they will be moving out.

The trio remain on the run as police investigate.