More than 100 fires are still burning and emergency warnings remain in place for fires at Springwood in the Blue Mountains and another near Newcastle at Nords Wharf.
The Rural Fire Service early on Friday morning said homes were under threat on Government Rd, at Nords Wharf, but residents were told it was too late to leave and they should seek shelter.
A major fire at Lithgow, west of Sydney, is now heading in the direction of Bilpin and Mountain Lagoon in the Blue Mountains. An emergency warning remains in place for the district.
Residents have been advised to leave now if it is safe to do so.
"Only well prepared and actively defended homes can offer safety. If you plan to leave, or you are not prepared and there is a safer place nearby, leave now if it is safe to do so."
More than 1500 firefighters have been battling the blazes which started in hot and windy conditions on Thursday afternoon.
A cool change early Thursday evening brought some relief to temperatures, but it also created new chaos, swinging fire fronts around and pushing blazes into new areas.
Weather conditions are milder on Friday, but firefighters are still wary.
Authorities expect hundreds of homes to be lost.
There have been unconfirmed reports of properties being lost at North Doyalson, on the Central Coast; at Lithgow; at Yanderra and Balmoral, in the Southern Highlands; and in Port Stephens, where a fire has forced the closure of Newcastle Airport.
One of the worst-hit areas was Springwood, in the Blue Mountains, where up to 30 homes were known to be lost.
But authorities expect the number of destroyed or damaged properties across the state will be much worse and fear lives may be lost.
So far 88,200.65 hectares of land have been burnt.
Numerous schools are closed on Friday.
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7.51am Emergency Warning remains in place for Ruttleys Road Fire, Wyong.
The NSW RFS says: "The Ruttleys Road Fire is burning in the area of Doyalson North, Swansea, Cams Wharf, Murrays Beach, Cave Beach and Catherine Hill Bay areas."
7.40am Stay with us throughout the day for live updates on the battle against bushfires in NSW.
NSW Rural Fire Services say they expect a tough day ahead with 65 fires still burning in NSW and windy conditions expected.
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