In a statement to Fairfax Media, cousin Lisa Gray said the family was devastated and would do everything possible to help find the person responsible for Ms Ristevski's death.

"Karen was such a beautiful, kind, generous and loving person. I would like to thank the police, the SES and everyone else who has helped us through this time," she said.

"We will continue to do everything we can to assist police to help find the person responsible.

"We call on anyone who may have seen or heard anything, particularly from the Mount Macedon area, to call Crime Stoppers."

Police said forensic tests confirmed remains found in bushland at the base of Mount Macedon on Monday belonged to Ms Ristevski.

It marked a major breakthrough in the baffling case.

A close friend of the family said they were "broken" by the news that Ms Ristevski had been identified.

"It's totally devastating, she was such a beautiful person. She didn't deserve this, I can't say anything else right now. It's too upsetting" said the friend.

The 47-year-old mother and fashion boutique owner was last seen at her Avondale Heights home in Melbourne's north-west by her husband Borce Ristevski on June 29, 2016.

Two plain-clothes detectives visited the Ristevski's Oakley Drive home shortly before 5pm on Tuesday. They left alone about 5.45pm.

Minutes later, police released a statement confirming the body was that of Ms Ristevski.

Soon after, friends and family started arriving at the Avondale Heights property, which is also home to Mr and Ms Ristevski's 21-year-old daughter Sarah.

A woman left a bunch of flowers at the front gate in tribute.

On Monday, a bushwalker stumbled across what police had been searching for for nearly eight months.

Ms Ristevski's remains were found between two logs, not far from a dirt track off Loch Road in Mount Macedon Regional Park about 12.30pm.

A huge crime scene was established, with the area taped-off as homicide detectives and forensic officers searched for evidence.

Police have appealed for anyone who may have been walking along the dirt track, or anyone who may have seen any vehicles to contact them.

Investigators said they were are also hoping to speak to anyone who may have been at Mount Macedon any time since June last year and taken photos or video in the area.

Monday's discovery ended an intensive almost eight-month search for Ms Ristevski, which started from the vicinity of the Avondale Heights home and grew to Gisborne, near Macedon, and northern Victoria.

Police, who had scoured the Maribyrnong River near the family home, moved to dams in Toolern Vale near Gisborne and searched surrounding farmland.

That two-day search in December also included Black Hill Road in Gisborne South, where Jill Meagher was buried in a shallow grave after she was murdered in 2012.

At the time, Detective Inspector Stephen Dennis from the Missing Persons Squad, confirmed there had been ongoing discussions with members of the Ristevski family, but would not say what had prompted them to concentrate the search in the Gisborne area.

However, Ms Ristevski's phone reportedly pinged on towers on the Calder Highway and at Gisborne on the day she went missing.

Mr Ristevski's phone was detected in nearby Diggers Rest on the same day. His phone was also reportedly switched off for two hours.

Gisborne is about 12 kilometres – a 14 minute drive over the Calder – from Mount Macedon.

The last public plea for information the family made was last July, about two weeks after Ms Ristevski went missing, when her aunt spoke to reporters and pleaded for help. Mr Ristevski and daughter Sarah were both present, crying and hugging.

In August, police searched bushland in the Barmah National Park, where the Ristevski family is believed to have spent holidays.

Mr Ristevski said the couple had an argument over financial issues before his wife left their home to go for a walk to "clear her head".

But she never returned. Her phone and bank accounts were never used again.

The case has been marked with bizarre theories since Ms Ristevski disappeared.

Mr Ristevski reportedly told detectives he had driven his wife's 2004 Mercedes-Benz coupe on the day she disappeared to test a faulty fuel gauge. He said the car hit a bump in the road and the problem fixed itself, so he turned around and returned home.

Mr Ristevski's brother Vasko Ristevski claimed his sister-in-law was alive and well, and had fled overseas using a fake passport.

Meanwhile, Mr Ristevski's son from a previous relationship, Anthony Rickard, told various media outlets there was conflict within the family and his stepmother had fled.

Both Borce Ristevski and Mr Rickard have been interviewed by police. Fairfax Media is not suggesting either was involved in Ms Ristevski's disappearance.

Ms Ristevski reportedly received a share of a $360,000 will left by her father before she went missing. She and her brother inherited the sum after the death of their father, Joseph Williams, in 2014.

However, Ms Ristevski's fashion boutique Bella Bleu had closed in February last year, and caveats had been placed on the $1.1 million family home by lenders.

with Darren Gray, Chloe Booker