I don't look at active listings for a reference (although some are downright hilarious like this "lawsuit era" guitar). I look at SOLD listings. Just because some dipwad has a $300 guitar listed for $1200 does NOT mean it is worth $1200. But, there is occasionally that one joker with money to burn who is WILLING to pay $1200 for a $300 guitar then it IS worth $1200 and it is no longer a $300 guitar.
If you look at how long these grossly overpriced guitars are listed you'll likely find they have been stagnant for a LONG time.
I got this Cardinal for $317 including tax and shipping. Sold the good pickup and the mini toggles. I now have a CS-350 for a grand total of $272 including shipping and taxes with OHSC and that's after buying a new set of pickups for it.
Got a brand new Aria Pro II PE-350 Standard (set neck) for $283 including shipping and taxes when everyone else was asking $350.
This guitar has been listed for better than two years, has had over 4200 views and is still there. It's pretty obvious the seller really wants to keep it.
My first decent guitar was a Lincoln LP copy I got when I was 19. I've found only two in the last two years. Both wanted $500 or better for them. I let them keep them. As much as I'd like to have one the little voice in my head tells me "That's stupid! Don't do it idiot!" and I listen to the guy. He's smarter than I am.