Should you list your house when your neighbour's house is also for sale?

Having the neighbour's house for sale is a bonus!
Competition on your own street is called exposure and exposure sells houses. The neighbour's house attracts attention as will your house. There will be interest from buyers, neighbours and other Realtors. Many a home has been sold when a buyer comes into a neighbourhood to view one home only to end up viewing and buying another . When there is an open house or  a Realtor office tour at your neighbour’s home, your house will benefit from the exposure.
Don’t hesitate to list your house. Having competition is often a very good thing!