The small town of Springhill, Nova Scotia is on edge after a woman was found dead inside her home early Monday morning.

Police say she was murdered, and an 18-year-old male who lived with her is now in custody, after he turned himself in to police.

Officers arrived at the Mechanic Street residence just before 3 a.m. and found the body of the 38-year-old woman inside the home.

"I know her," says neighbour John Mitchell. "A couple of days ago I was talking to her with my dog."

Police say this is the first murder to happen in the tiny town of roughly 4,000 residents in five years.

"It's scary," says resident John Parsons. "It's really scary because you never know what's going to take place from day to day."

Police say the teen showed up at the police station around 3 a.m. Monday.

"He said there had been a murder that had taken place at 80 Mechanic Street," acting chief Dean Ruddick tells CTV News.

Ruddick says the teen has not been charged, but he remains in police custody. He also says the youth is known to the victim, and that he lived in the home with her.

Neighbours tell CTV News the woman, whose name hasn't been released, hadn't lived in the home for long.

They also say she was from Halifax and that the home belongs to her boyfriend, who she had been staying with for a few months.

Police wouldn't comment on the relationship between the victim and the homeowner, but they have confirmed the man who owns the home was in jail at the time of the murder, for an unrelated matter.

"When you're in a small community you know everybody pretty well," says Ruddick. "It's very traumatic. It's hard on the officers, hard on the community, hard on ourselves. There's a lot involved."

Amanda Aylward lives next door to the home where the murder took place, and she says she is considering moving.

"I just want to make sure that my family is safe, and get off this hill as soon as possible," says Aylward. "I am leaving."

With files from CTV Atlantic's Kayla Hounsell