If the market is anything like Vancouver, I think it probably is at least during the summer months, and if the bike is (very) clean, properly tuned and has decent components (looks like Shimano 600? hard to tell from the pictures) I think it could probably fetch about $350 CAD, maybe more if really pristine and with indexed shifting. You will need to market it well though, big pictures illustrating the cool colour combo (purple and yellow is pretty rad) will play well with the hipster crowd I imagine. If the bike is ready to ride away with no needed work that is a big point too for people who are new to bikes and don't want a project but rather a cool looking old bike to impress their friends this summer. The front tire looks pretty old and it doesn't match the rear one. Some flippers may argue with me on this one but I would be tempted pick up a couple yellow tires (or yellow and black) to really emphasize the colour combo that is going on. I would only do this if I could find the tires for $20-40 for the pair. In my experience selling bikes this time of year in Canada there are a lot of kids wanting to get on the road and a one of a kind custom & vintage bike that is ready to ride will sell fast.
If you are going with craigslist for a sale, hot link to some larger images that you have hosted on flickr or another image hosting site. I speak from experience having sold similar, but probably not as nice, tuned-up bikes with cool colour combos here in Vancouver for $300-350. I was happy having made some good coin and the customers were happy getting a bike that will be both reliable, fast and flashy enough to impress their friends.