Oh, Agreed - Zillow's data and numbers are guesstimates at best. I don't think Zillow is accurate in specific cases, but I think it is a useful comparison tool to look at overall trends.

Even with that - just looking around town, around my neighborhood, and talking with people - in the past two or three years, I haven't heard of a single house going for under asking price. It's all at asking price, or over. Usually, if the house stays on the market longer, it's at asking price, at least that's what I have seen with my admittedly incomplete information. To be fair, the number of houses sold here is so low, that getting an average selling prices is ... usually an N=2.. so it doesn't mean much.
And lots of houses are never on the open market, they go pocket listings - so you don't really know until 30-60 days after the sale has closed.