A Melbourne man who awoke to find a tram had smashed into his house says at first he didn't realise how close he'd come to being seriously injured.
The tram careered into Paul Wilson's home in Kew late on Monday night after it was struck by a car and forced off its tracks.
"I thought it was an accident out the front (initially)," Mr Wilson told reporters on Tuesday.
"I thought 'Yeah another car smash', then there was a second bang and a third bang.
"The fence came through and smashed into (my) car - that was the second bang - and the third bang was the wall."
Parts of Mr Wilson's home could yet collapse, the Metropolitan Fire Brigade says, meaning he can't return until emergency crews have properly assessed the damage.
The woman whose car struck the tram was trapped inside her vehicle, before being released and taken to hospital with minor injuries.
None of the people on the tram was injured.
A neighbour says Mr Wilson's house was strong enough to absorb the impact.
"Luckily there were not many people on the tram, not many people on the streets (and) that house must have really strong walls," the Kew man told reporters.
The tram ran over a gas meter and came to rest touching overhead wires. Emergency crews shut off the gas and electricity supplies as they worked to remove the tram from the scene.
Police are investigating the cause of the crash.