I mostly update around 5 PM because I really like the orange sky and you are still able to see all the pretty colours!
But maybe there is a better time to update?
So, when do you update and why? :]
I usually do mine around 5pm because I love the music and the sky, but if I miss that then I like it around 6pm as well because the lights come on and it just looks really cosy
I just do it whenever I remember to but really I should start doing it at either 6pm because looks prettier then, or 8pm/1am because I like the music and it's nighttime
If there's a double rainbow I'll do it any time, but I like 4:30pm as the sun starts to set, and 6pm for the pink sky and when the stars start to come out ^^
I like to update whenever the sky looks neat. So if there's a nice sunset, aurora, or meteor shower I'll try to update. Sometimes I'll update in the rain too if my town looks nice. Most of my updates are in the evening/at night though.
I haven't done the whole dream address thing because neither of my towns are finished yet, but I gotta say... the 5pm colors hurt my eyes. Sunset in games always irritates me because the sky itself is pretty, yes, but there's always this red cast over everything and it's just not fun for me to look at.
For my main town (lots of flowers and dirty paths, greenery, etc - more "natural") I'm thinking noon-ish. For the secondary one, which I'm doing up to be more modern and city-like, I want to go with either sometime around dawn when the stars are still out but the sun is just lightening up, or at night so the sky is uniform and darkening and the streetlights can all glow~
I do it all the time on 5pm, because the evening sky and the music is so beautiful. It gets better if there is the rare red-orange sky. Instant dream update for that.
Anytime when most are up and about, unless is a nighttime event. I always update a town right before a give or letting someone go so people can see the villagers home first if they wish.