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When you change one or more properties which bind with control in ListViewItem, you just need to implement the INotifyPropertyChanged interface and PropertyChanged event to make your viewmodel observable. When the value of property changes, it will trigger the PropertyChanged event and notify the UI bound with the property to update. In that case, you don't have to use ObservableCollection.
In addition, if you will remove or add items, it's better to use ObservableCollection as itemsSource. Since it implements the INotifyPropertyChanged and INotifyCollectionChanged interfaces, when remove or add items, these interfaces provide change notification to bindings.