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Melbourne's median house price is now almost $730,000.
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Clearance rates can be used to establish if the market favours buyers or sellers.
Melbourne is set for a record number of auctions this weekend.
The Victorian government will review four pieces of property legislation: the Estate Agents Act 1980, Sale of Land Act 1962, Conveyancers Act 2006 and Owners Corporations Act 2006.
"The level of demand and competition for larger homes, particularly in the middle and outer suburbs, is encouraging more vendors to sell."
Historical shop fronts in Melbourne's inner city converted to homes.
For the second successive year, the 2015 auction capital is Reservoir.
Sellers in multiple Melbourne suburbs have been virtually guaranteed their homes will sell in the past three months, the REIV said today.
A regulatory change that would have removed the need to involve an agent in large commercial transactions will be repealed.
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