Overshoot is one way of looking at it, but it is the true temperature.
Down south NWS ASOS works like this.
Quote: At RDU, the weather station is of a type known as "ASOS," for Automated Surface Observing System. The system has to be able to operate continuously with relatively little maintenance and to provide reliable and useful data any time of day. In the case of its temperature sensor, the designers chose to use the following protocol:
an instantaneous temperature sample is read from the resistance thermometer once every 10 seconds, then at the end of one minute the six resulting values are combined into a one-minute average reading. At that same time, an average of the most recent 5 one minute readings is calculated to produce a 5-minute average value, which is rounded to the nearest degree F and also converted to the nearest tenth of a degree C. That 5-minute, reported each minute, becomes the basis of all further processing and reporting by the system. Near the top of each hour, the 5-minute average that exists at that time is reported as the "hourly" value. In addition, the system checks each 5-minute average to keep track of the highest one each hour, and eventually to report (just before midnight) the highest one that occurs all day, and similarly track the lowest temperatures. If you think about the variable trace in the image above, a 5-minute average would have a lower value than one of the peaks of those fluctuations, but would also be more representative of what most of us would experience over the course of that 5-minute period.
On Sunday, it is quite possible that some of the 10-second readings, and even a few of the one-minute averages, may have reached 106 or even a bit higher, but since those were fluctuations that did not last very long, the 5-minute average never rose higher than 105, which eventually was reported as the high for the day.Source:
https://www.wral.com/weather/blogpost/11302787/?comment_order=forward