Molten lava flows reached the outskirts of the Icelandic town of Grindavik on Sunday (January 14), setting three houses alight, after a volcano erupted for the second time in less than a month.

The town, 25 miles southwest of the capital Reykjavik, was evacuated earlier and there was no immediate danger to people.

By Monday (January 15), the volcano appeared to be significantly less active, despite indications that magma is still flowing underground.

A crack in the earth's surface that opened close to Grindavik was no longer active, said geophysicist Ari Trausti Gudmundsson.

"The danger is that because there is still an influx of magma into the fissure system that a new eruptive fissure opens up either further to the north which is more or less okay but also to the south and that would then be within the borders of the city. Further south, closer to the harbor and if something like that happens much more houses are in real danger. No people, but much more houses and infrastructure."

The Icelandic Meteorological Office said the eruption center is a high-risk area and new fissures could open without warning.

Live video footage on Monday showed glimpses of orange lava still flowing to the surface but at smaller volumes, and further away from the town.

Residents of Grindavik, a town of some 4,000 people before it was first evacuated in November, said it was difficult to watch televized images of the fires.

Jon Gauti Dagbjartsson was evacuated just hours before the latest eruption.

"This is big, this is serious, it's basically as bad as it can possibly get. Although it might get even worse, who knows. So, I mean, I'm born in this town, I actually live in the house that I'm born in and it's a tough thought to think that this town might be over, and I would have to start all over somewhere else."

The Icelandic government will meet on Monday to decide on support for the people of Grindavik.