Writing Class Dialogue

This semester I enrolled in a fiction writing class. I am enjoying the experience despite the fact that it starts at eight in the morning. Last week the professor gave us a quick exercise. We picked a line from a list and wrote a dialogue in under five minutes. I chose the line “That picture in hanging crooked”, and this was the result:

-That picture is hanging crooked.
-Yeah that happens in this area.
-Crooked pictures?
-Earthquakes.
-Then why did you move out here?
-They say its cause of a tectonic plate, but eventually it’ll be gone.
-But why did you move here if it gets earthquakes?
-Like I said the plate will be gone eventually.
-Shouldn’t that take thousands of years… and lots of earthquakes?
-Well I don’t mind crooked pictures in the mean time.