Unfortunately, there are still some trouble spots in the Livermore real estate market. While the initial problems with foreclosures, although relatively minor, were caused by the collapse of sub-prime mortgages, large scale unemployment promises to be the next major problem. According to mortgage broker Cathy Warshawsky, “I think it’s going to continue to get worse. If people are unemployed, I don’t care what kind of loan they’ve got, they can’t pay their mortgages.” Additionally, an August 29, 2009 article in the San Fransisco Chronicle found that “Condos for $20,000? Single-family homes for under $60,000? What is this, Detroit? It’s the topsy-turvy world of Bay Area real estate. Despite studies showing prices slowly rising overall, homes at the low end appear to be playing a game of limbo, flaunting prices comparable to what you’d pay for a car.”

An August 27, 2009 article in the Oakland Real Estate Examiner found that these market conditions are spurring home buyers who were previously on the fence to purchase homes and condos at a rapid pace. The piece, written by John Harper, stated that “The slower economy of the last couple of years has offered homebuyers plenty of incentives to buy real estate; cheaper home prices, lower mortgage rates, and big discounts on foreclosures.” According to an August 22, 2009 article in the San Fransisco Chronicle, “home sales gained ground in both the Bay Area and the nation in July, according to two real estate reports released Friday.”