I wave to my close neighbors, and if we meet each other outside we sometimes have a little chat. I'm not really close to them, have been in each other's homes rarely, not on a regular basis at all. If I see them in the store or at the gas station, I will always say hello, and chat if appropriate. I don't know too much about them personally, I don't ask a lot of questions or give out too much info. My neighbors are very nice, and I'm lucky not to have neighbors from hell like some people have.
Glinda, that sounds like a lovely little community, very homey and friendly and a perfect place for creative spirits.