Update 5.42pm: A shocked mother told neighbours her "little girl" had been stabbed as they tried to comfort her after the knife attack.
Mylee Billingham was named by police today as the schoolgirl who died in hospital after being found critically wounded.
A 54-year-old man found with stab injuries at the bungalow in Valley View after what West Midlands Police said was a "domestic incident" is fighting for his life in hospital.
Graham Greatrex, 74, told how emergency services rushed to the quiet street at 9.15pm.
Mr Greatrex, who lives a few doors from the crime scene, told the Press Association that as he helped the mother she said a man had "stabbed my little girl".
He added: "She was in shock and she couldn't say anything else."
Today, the home was being searched by forensics experts in the cordoned-off, one-storey dwelling, which is believed to belong to the local authority.
It was one of a row of terraced bungalows in the street.
Detective Inspector Jim Colclough, who is leading the investigation, said: "We are still at the early stages of understanding exactly what happened and why - but I can confirm we are not looking for anyone else in connection with this investigation."
Mr Greatrex said a man had lived there for the past six months after the previous occupier, a woman, had died.
But he said he did not know the current occupant.
He added: "It was a bit of a shock. You can't imagine it happening on our doorstep, especially when it's a little girl."
Other neighbours said they were also stunned at news that a child had died.
Bob Weir, who lives two doors away from the bungalow where the stabbing happened, said he had initially thought the incident was drug-related.
Mr Weir, 72, added that a middle-aged man lived at the now sealed-off property, apparently on his own.
The pensioner told reporters: "I didn't hear until this morning what it was and I was absolutely shocked - I didn't know the bloke who lived there and he hadn't lived there long, maybe six months, if that.
"There were police cars both sides of the road, ambulances ... all sorts. I thought it was something to do with drugs.
"I didn't know there were any kids in there. I thought he just lived on his own. I never saw a girl or a woman there."
Another neighbour, who asked not to be named, said: "I only knew the guy to say hello to and I think he was married and was living there on his own.
"I didn't hear anything before the police got here.
"It's really sad. This is not the sort of area where you hear of anybody being stabbed."
Earlier: Girl, 8, dies after stabbing in 'domestic incident' in UK
A man has been arrested after an eight-year-old girl was stabbed to death in a "domestic incident", police said.
The child was discovered seriously wounded at a property in Brownhills, near Walsall, on Saturday night, and died a short time later in hospital.
West Midlands Police said the man, 54, was also taken to hospital with a stab wound to the stomach.
He is in a stable condition and will be questioned "in due course" over the incident in Valley View, a residential street on the edge of the town.
Police were called to the scene at 9.15pm.
Detective Inspector Jim Colclough, from the homicide unit, said: "We are treating this as a domestic incident and are not looking for anyone else in connection with the child’s death.
"Our family liaison team are supporting the family of the little girl, who are naturally devastated by her death. Our thoughts remain with them."