Hi Gilly;
Thanks for joining and welcome to the Beach, we had some discussion a couple years back about the oldest house on the Beach and according to the Dorothy Turcotte's book "The Sand Strip", homes where built starting back in late 1870's.
Back in those days it was the rich and the affluent who had the first homes and they were mostly their summer residences. However your house maybe a tad small compared to what was built back then, next time I am at the library I will have to have look to see how far your house goes back.
To your question, is it possible, I would say yes.
Also, being so close to Knapman Ave. I wonder if the Knapmans built and owned that house as they did with many in the neighbourhood.
http://hamiltonbeachcommunity.com/forum/showthread.php?t=1537
The attached picture is from 1980, 696 Beach Blvd is the light coloured house to the right.