The same tradition occurs in filling the written description of a place with no amenities. “Walking distance to schools & churches” is a popular filler. Τhe facility could be 50 feet away or it could be a 5 mile walk; anything short of walking alongside the freeway is fair game to describe in this fashion.
Realtor associations at least in the Netherlands have guidelines (e.g. on what distances amounts to 'walkable') that prevent this sort of thing, I see no reaons our country would be unique; that said, do you have any specific examples of ads like this? It's not that I'm that fond of realtors, but some of the over the top claims in this thread are really exaggerations. Will you find examples of exaggerated claims? Of course. The question is, is it 'common'? I'd say no.
My father worked as a realtor for some years so he taught me how to parse listings (and photographs) for the reality behind them.
Varies greatly by income (which is why HN thinks it's extinct).
Sometimes a narrative is just that.