Investigators say the confrontation took place between the 39-year-old homeowner and a visitor to the house on the 400 block of Dudley Street.
At one point the disagreement turned physical with the visitor grabbing a hammer and the homeowner picking up a knife.
The visitor ended up getting badly stabbed.
He staggered out of the house and down the street, before collapsing.
He has since died.
The homeowner is in critical condition at Jefferson University Hospital with wounds and head injuries.
The nine and 11-year-old sons of the homeowner's girlfriend were in the house, but not harmed.
Police are questioning them about the deadly fight.
Investigators say the girlfriend was not involved in the confrontation.
Officers found money strewn across the sidewalk outside the house, but are not saying robbery was a motive.
They have not indicated any motive at this time.
