The market has certainly dropped since then, and has taken another hit in the last couple of months. There's a rough, running K that was floating around locally. Old mate started at $2k, and was down to $800ono last time I looked - I don't know what it sold for, but it popped back up for sale soon after with a silicone spray & rattle can rebuild (no price, but it still looked like an $800 ono bike to me).
Most decent Pre-85 250 race bikes can be had for $2000 to $3500, depending on just how pretty and how well sorted they are. Anything up around $5k needs to be pretty much perfect.
That L on ebay won't sell for $5k. If the seller needs to get rid of it, he would have to start at something closer to $2500 and see what happens - and make a much better ad...