Homes at Kremnos may have been destroyed by bushfire, says NSW Rural Fire Service (ABC)

Homes may have been destroyed by a bushfire in northern New South Wales, fire authorities say.

The New South Wales Rural Fire Service has downgraded an emergency warning for Kremnos in the Clarence Valley, south of Grafton, which has burnt about 700 hectares.

Inspector Brett Loughlin said late on Saturday, the fire was still burning aggressively near properties and a small number of homes may already have been destroyed.

"There's a real potential that, you know, a house may have been lost today and that's obviously something that we'll be working to confirm," Inspector Loughlin said.

"But at this stage we're talking small numbers fortunately, thanks completely to the hard work of our firefighters working very closely with residents in the area."

Fire crews will stay in the area overnight to battle the fires, strengthen containment lines and backburn.

On Saturday afternoon fire authorities downgraded a warning for Carrs Drive, Yamba, where earlier in the day the Yamba Waters Caravan Park was under threat.

No houses were lost in the Yamba blaze.

Grafton police duty officer Darren Williams said residents are familiar with bushfires.

"Most of the public are being pretty good," he said.

"Most of the people in this area are used to bush fires, they've been here a long time and we've had a number of fires in the area.

"You're dealing with a lot of farmers that are second and third generation farmers and it's a way of life."

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