National markets vary slightly as well of course, but I know those guitars usually come up for that amount of money. One being sold for less isn't that weird either, though, certainly if you're not buying it from a store. I've seen CS Fenders go for nearly 3000 used and on the other hand, I only paid 1700 for mine. Depends all on the demand as well. Mine had been sitting in a shop for a couple of months and he was having a clearance sale, for instance.
How much were they new? The market's flooded with strats and this doesn't sound like anything special. I agree with looking on Ebay and Reverb at completed sales. Else, I'd hesitate to pay over 500 US.
Fender Time Machine is a Custom Shop series. Good luck getting that at 500.