The Premier League title pace is currently being set by two arch-rivals, with only alphabetical order splitting them at the top of the standings.
Both Jose Mourinho’s side and Pep Guardiola’s team have been full of goals, with opponents being broken down and blown away.
Neville, though, believes that United’s favourable fixture list has helped them to this position, with there still plenty that two sides setting their sights on the crown have to prove before silverware is handed out.
He told the Class of ’92 blog on Sky Sports: “I did say at the start of the season that the title would end up in Manchester and the evidence so far supports that, but it's far too early for either club to get carried away.
“You would have said, from the fixtures, United should have been at the top at this stage, but I think the table will start to even out once we see them against tougher sides.
“There are still big questions about both United and City. Can United break down sides? Can Manchester City handle it against more physical sides?
“If you look at United, you saw them make mistakes at Stoke and there were chances for Everton, but ultimately the weaknesses they have shown at the back are covered by a goalkeeper in David de Gea who is absolutely world-class.
“Jose Mourinho has always been a good manager at home and he is happy to sit in and let teams expose themselves, and United's record at Old Trafford is now no defeats in 12 months since City won there.
“To me they are looking a lot better than before in terms of breaking sides down and killing off games.”
Both sides have collected 13 points from five fixtures so far, while netting 16 times apiece and conceding only twice.