When someone makes an off the cuff remark, joke, or observation to me, I sometimes just laugh and nod along. I realized this silence might be kind of weird. I typically don't respond because I don't have anything clever to say back, so sometimes I'll just say "That's pretty funny". Most often though, I don't say anything back. Is this weird? How can I respond in a productive way?
For example, as I was leaving my apartment for work, I bumped into my neighbor who had been walking her dog. Her dog started excitedly sniffing me, and she made a comment along the lines of "Wow, she really likes you!" I just made eye contact with her, laughed and smiled along with her, and maybe said "oh" in a surprised manner, before I continued out the building. I feel like this is really weird of me, but I kind of freeze when these things happen.