M.P.
This house sounds like an ideal distance from school, park, library. Kids can be taken in a stroller until they are too big to fit in it. I have put my grandchildren in a stroller for my own convenience while shopping up until around 3.
I live approximately a mile from a park and my granddaughter began walking with me once she was steady on her feet. If she is rested (i.e not in need of a nap or food) she walked both ways. Sometimes she'd beg to be carried half way back home and I frequently did carry her for a block or so and then she'd walk for a block or so and so on.
When she was 3, I walked her to daycare which was about 8 blocks away every morning. She had loads of energy, running most of the way. She now loves to walk and even begs to do so.
So, I say go for the house you like! I think kids, once they're good walkers, can outwalk (usually means while running) most adults.