Now that's funny, how many millions of houses going into foreclosure and they are still building houses as if the demand is going to pick up in 12 months, when do people wake the Fu$k up and realize demand for housing is years off. These stocks are truly overvalued here. These stocks should be trading in the low single digits. Demand for housing will not back for at least a decade. Sept. 18, 2009, 7:56 a.m. EDT Â· Recommend Â· Post: J.P. Morgan turns positive on home-builder sector Explore related topics Toll Brothers Inc KB Home MDC Holdings Inc BOSTON (MarketWatch) - J.P. Morgan analyst Michael Rehaut on Friday said he's lifted his view on the home-builder sector to positive from negative. "While fundamentals will likely not demonstrate an uninterrupted solid rate of improvement over the next six to 12 months, we believe that not only is housing solidly past its trough, but over the next 24 months will continue to recover and drive further upside to the current rally in the home-builder stocks," he wrote in a research note. Rehaut also upgraded Toll Brothers Inc. (TOL 22.01, +0.48, +2.23%) and KB Home (KBH 19.97, +0.28, +1.42%) to overweight from neutral, while M.D.C. Holdings Inc. (MDC 37.53, -0.58, -1.52%) was dropped to underweight from overweight.