Craigslist prices vary by region, but $160 seems like a lot for that bike. There are better bikes available for that money. At least in this neighborhood.

The listing says that the bike was stored indoors for many years so there's not much rust, yet the handlebars look to have quite a bit of rust. There appears to be rust on the bottle cage bolts and the chain as well. My guess is that it also has friction shifting instead of more modern indexed shifting (though I could be wrong on that one). A lot of people prefer friction shifting but the majority of the cycling public doesn't.

I also disagree with the premise that a hybrid is better than a road bike for commuting. It really depends on the particular bike, your commute, and your personal tastes. If the roads are pretty decent, then in my opinion, the road bike is going to be better unless you really don't like drop bars.

On the plus side, if that's the going rate for a bike like that and it rides + shifts well, then it will certainly be good enough for a 5 - 7 mile commute.