UPDATE 4 p.m.

Penticton fire captain Mike Richards said that fire crews will be working on controlling the fire for a few more hours, though the largest of the flames are out.

"There's corners in the attic spaces that heat and smoke are in so we have to get those out," Richards said.

He said the fire originated from the more westerly house on Acacia Crescent, and quickly spread next door. Around 20 firefighters total responded. 

"All people are out safely. One couple was out of town and are on their way back," Richards said. 

He said they will wait until the scene is cooler until they can go in and investigate cause and origin. 

Richards also added that the intense temperatures the Okanagan has been experiencing make their job a little tougher, though they have ambulances on scene to keep firefighters safe from overheating. 

UPDATE 3:35 p.m.

Both homes appear to be totally gutted, with roofs caved in and large plumes of black smoke billowing from within. 

The fire started in the garage of 127 Acacia, eventually spreading to the rest of the home and the neighbouring dwelling. Flames are no longer visible as an army of firefighters continue to dump water on the homes from a distance. Additional PFD water trucks are being called to the scene.

Everyone has made it out of 127 Acacia safely. 

The crowd that gathered to watch the action has now been moved down the street. 

UPDATE 3:10 p.m.

The Penticton Fire Department has set up a defensive perimeter around the two homes and are attacking the fire from a distance with water. 

A large plume of black smoke has blanketed the neighbourhood and a crowd has gathered the watch the firefighters work. Everyone has made it out safely from 127 Acacia, according to reporter Chelsea Powrie.

ORIGINAL 2:50 p.m.

The Penticton Fire Department is fighting a double structure fire at 127 Acacia Crescent.

City manager Peter Weeber says a garage fire has spread to the attached residence and the neighbouring house, "crews on scene managing the incident."

A large plume of black smoke can be seen from the entire city. Witnesses report hearing explosions, possibly related to propane tanks. 

Nineteen firefighters have been called to the scene. 

Castanet has a reporter there and will update.

Photo: Chelsea Powrie