It is basically true for sellers markets, because it gives more advantage to the seller. being a sellers market doesn't make it an irrational housing market.
During a buyers market, prices usually approach the list or go under.
This reflects the fact there is how much the house is worth to the seller, and how much it is worth to the buyer, and neither of these are the sale price.
I feel like this is only true in irrational housing markets, or at least those that have a chronic undersupply of housing .
In my local non-insane market I went through two different purchases where I successfully bid less than asking.
That's gone since the pandemic though since everyone tried to move out of cities and work remote in my town.