Don't despair, as plenty of people make little to no money on their first real estate venture; you get better (hopefully!)

He doesn't want to rent it and it seems like even though he says he is motivated, he doesn't appear to be in a situation of despair. 

The challenges of Detroit are unique, real, heartbreaking, pocket-busting, exhausting, sad, scary, life-threatening, bureaucratic craziness filled with love hope and despair.  20% CAP rates are not free my friends. 

Meanwhile poor average joe buys out of anticipation and hope and sells out of despair or need; and the market maker LOVES average joe investors ,it is easy cash.Average  joe spends time and effort on all kinds of courses on trading ,listens to podcasts,buys books, goes to conferences, goes to expensive training.No body told or teaches average joe investor that instead he/she has got to figure out how to get information about when the whales (big investors) buy and sell or make big moves and then be in the correct side of the trade and thats it! 

It is very rare to see a major correction or "Despair" as your chart would indicate.Remember in the 2008 financial crisis what Obama kept saying, "greatest financial crisis since the great depression".

The house doesn't go on the market, or maybe it did, but the recession has caused the value to decline and the market is in despair.

Sure.But don't despair.

Often times the trauma that comes with our obligations of service can lead to feelings of anxiety and despair.

But don't despair because although this is the case when you look at it myopically, in reality most investors go into multiple deals accumulating 100s of thousands of passive activity losses in their first few years investing.

I am excited to see an area, that once was in despair, vitalizing strongly :) Congrats on the market!