There's a few of those on my local CL from $200-300 in various shapes, so I wouldn't worry about the price too much. What is really $30 or $40 at the end of the day for something you wanted (my logic, anyhow!).
Second the vote for Pasela 27x1-1/4 (assuming there are still 27" tires on the bike). Got them on three bikes I take care of, wonderful tires that will go through anything a touring bike would want to. If you are patient, you can often find them under $20, too.