Foreclosure activity across the United States continues on an upward trend. Among 206 metropolitan areas tracked by RealtyTrac, 65% had year-over-year increases in foreclosures during the third quarter of 2010. Metros with the nation’s worst foreclosure rates remain concentrated in California, Florida, Nevada and Arizona, with metro Las Vegas occupying the overall top spot.

Nevertheless, the problem is much less severe in plenty of other metros. Foreclosure rates in major metros such as New York, Boston, Houston and Dallas are at least 5 times better (ie., lower) than such places as Riverside, CA, Miami and Phoenix.

For ULI members, a low foreclosure rate can signal a housing market that isn’t flooded with short sales and thus may have more demand for new residential construction. So, below are the Top 10 major metros with the lowest foreclosure rates in the third quarter of 2010:

Rank

Metro

3Q foreclosure filings

3Q foreclosures per metro housing units

1

New York

20,504

1 per 362

2

Boston

7,632

1 per 240

3

Philadelphia

11,399

1 per 210

4

Houston

10,691

1 per 209

5

Dallas-Fort Worth

11,572

1 per 208

6

Baltimore

5,753

1 per 193

7

St. Louis

6,616

1 per 188

8

Washington D.C.

13,728

1 per 157

9

Minneapolis-St. Paul

8,739

1 per 154

10

Seattle

11,122

1 per 129

(Source: RealtyTrac Inc.)