We are still walking from the one claim of anunciation to the next. Carrying on through the narrow streets, all of a sudden, you find yourself in a street market. Here you see mostly hard stuff, but there are also stalls or shops where you can buy interesting food stuffs or like I did, a kilo of ground Turkish coffee. I still have half of it.
The historical significance of Nazareth is not so much. In general history, the first mentions of Nazareth is placed around 300 to 150 BC, depending on linguistic agreement. This will be the time that many Jews returned from exile. It seems from old sources that it was a Jewish settlement with around 400 inhabitants around BC 0 AD. Nazareth was a small and insignificant agricultural village at that time, with no trade routes and was of little economic importance. No big battle or any such event is linked to it. It remained a Jewish settlement until the 7th century, from when it changed hands to the Arabs of the time.
Today, it is the largest Palestinian City in Israel and is even referred to as the Palestinian Silicon Valley. There are still some Jews living there, but they are few. The religion of the Palestinians in Nazareth is described as 60% Muslim and 30% Christian, with the remaining 10% distributed among other religions and non-religions.
The Biblical significance is that is the village where the angel Gabriel appeared to Mary (most likely between 12 and 16 at the time) announcing that she will have a baby and should call him Jesus. After His birth in Bethlehem, all boys 2 years and younger were killed by King Herod's men in and around Bethlehem. Warned in time, Joseph and Mary fled to Egypt, where they stayed until Herod died and returned to Nazareth, where Joseph worked as carpenter. In Luke 2.39,40 we read that Jesus "...they returned to Galilee, to their own city, Nazareth. And the child grew and became strong in spirit, filled with wisdom; and the grace of God was upon him."
A remark made by Nathaniel (later one of the disciples of Jesus), was, ‘Can anything good come out of Nazareth’ (John 1.46). This is an indication that Nazareth was not held in high regard by the Jews, as Nathaniel was a Pharisee at the time of his comment. After his first period in Capernaum, Jesus returned to Nazareth, where He proclaimed Himself. The inhabitants were annoyed an he left Nazareth for the last time, to return to Capernaum.