It happened in the 1000 block of Swithland Court in northeast Raleigh's Devon neighborhood. Tax records show the home is valued at $1 million.
Investigators said the homeowners were having a party on the back deck when a neighbor noticed a chimney was on fire.
The Bay Leaf, Raleigh, Wake Forest, Western Wake and Durham Highway fire departments responded to the blaze.
"They made entry into the house - the second floor area - to try and access the attic, and what they encountered was heavy fire conditions," explained an official at the scene.
Firefighters said there was little they could do.
"The fire spread so quickly that the integrity of the structure was compromised," said the official.
The official cause of the fire remains under investigation.
There were no injuries.