Victoria's regional housing market continues to be red-hot as it reports its shortest days-on-market in May since 2010, according to new data from the Real Estate Institute of Victoria (REIV).

The report shows that the average days before properties in regional Victoria get sold has hit 40 days, with the median going down to 35 days.

"Real Estate Institute of Victoria May 2021 statistics show that buyer activity is strong with days-on-market for outer Melbourne and regional Victoria listings recorded as some the shortest in over a decade," the report said.

The report also showed that the days-on-market in outer Melbourne has shrunk to 22 days, or 10 days below the median for metropolitan Melbourne.

"The data gives us a good indicator that more and more Victorians are making the move to outer Melbourne and the regional areas beyond," REIV said.

The heightened activity in regional Victoria was apparent in the recent price growth REIV recorded. Over the first quarter of the year, regional Victoria reported historic increases in median price, which surpassed $500,000 for the first time.

"The benefits of the strong real estate market have been shared around the state, not just in the traditional inner suburbs, with many city-dwellers taking up residence in regional Victoria, thanks to the adoption of flexible working arrangements and the reassessment of lifestyle priorities," REIV said.