The standard model has an MSRP of $969, the Performance Center version runs $1249. The 627, the descendant of the Model 27, is the pretty much top of the line for S&W in .357 Magnum, so yes, it will run up there in price. Even the standard model has had a lot of tuning work done on it.
(I will also add that much of the cost of American-made handguns today is the need for companies to build up funds in case of adverse court judgments - "that nasty gun went off all by itself and hurted my widdle pinky, boo hoo" - since the anti gunners have ordered insurance companies not to insure gun companies).
Jim