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Being the gun is fairly early AC 42 (1942 manufacture) and by Walther (AC), your neighbors guns is worth more that the estimates in this thread if: all the numbers match and the gun retains most of its original finish.
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AC42s were the first of the mass produced, lower standard P38s. By lower standard, I mean that the mags were not SN'd, the finish was made duller, they didn't have the individual parts stamped, etc.
Is a AC 42 early? In my opinion, no, they're not. The first of the P38 family was actually the AP, "armee pistole" which was Walther's first submission for a DA contract pistol. It was hammerless and lacked other features of what later became the P38. After the Nazi's submitted a list of features that their new service pistol had to make, Walther submitted the HP aka "heer's pistole". This was very similiar to a P38, but not the same. It was more of a commercial gun, and lacked the decocker, IIRC. After they modified the HP, the designation was finalized as "P38" or "pistole of 1938". The first military P38s other than some of the HPs which were issued, were the 480 code guns.
This was Walther's first maker code. A few thousand of these were made when Walther changed their maker code to "AC". Then came AC 40, but they also took some original AC guns and added the 40 mark. Then was AC 41, then AC 42 up to AC 45. There was also CYQ for Spreewerke (most common P38 maker) and BYF 42, 43, 44 and SVW 45 which was Mausers second maker mark.
Depsite the AC 42 being earlier than like a AC 44, they are not worth a premium unless they are the early ones with serialed magazines and even then, it would have to have an original mag which matches the gun to be worth much more than my estimate. AC 41s and earlier usually are worth more however but the statement "AC 42s are earlier and worth more" is misleading because AC 45s are worth than AC 44s, SVW 45s are worth more than BYF 44s (usually) and the very late CYQ guns are also worth a premium. The later made guns often had shorter production runs due to wartime issues with production. They also showcase many different shortcuts such as mismatching from the factory, a gray phosphate finish, absence of markings, cheaper grip types etc. Because there were not many of these shortcut guns made, they are worth a premium but they were made late in the war.
For P38s, EARLY guns and LATE guns and generally worth the most. An AC 42, IMO, is more of a mid war production gun, IE not very early. Remember that WWII started in Europe before the US was involved, in 1939.