Children are impressionable.  Such a neighbor would likely lead to a sense among the neighborhood children that she was to be feared.  Did she truly have the power of premonition?  This is hard to prove, hard to disprove. Certainly, her peeking out of the curtains at you would lead to a sense of discomfort.

It's interesting that she stopped visiting, eventually.

Your descriptions in this story are excellent. Especially impressive is the scene where she intrudes when your father is trying to eat lunch.  She may have been perceptive of dreams, but not so much of people and their moods. :)

You might want to edit one sentence where you repeat a phrase:
>We would stay quiet when it was a person unknown to us, and the neighbor, after talking about other things with my mother, would leave the house. the house.

Thank you for sharing this memory of your peculiar neighbor with us, @popurri.