Doesn't sound so bad to me, depending on what the site entails. The hosting fee seems a bit much, unless the server needs are beyond your typical website (like this site, which demands it's own server that costs $150 a month).
My wife worked for a local business that designed websites and they would charge as much as $10k for some projects. Then again, the sites had lots of fancy features like Flash, video, audio, etc. and they included logo design with that.