I have purhased two kayaks from craigslist in the past year. I got both for a total of $400, plus two paddles and life vests, though I didnt really want the life vests. (I already had my own).
My advice is to find a kayak style you like, and look atleast daily. Good deals go quick, and crappy ones just hang.
You also need to remember that it is summer now, and that is when people actually use the kayaks. Deals may be few and far between.