Before we hung up however, I wished his a good night and he wished me the same along with sweet dreams...what is going on?
Well, you keep playing nicey-nice with him, so he repeats it back to you. He's keeping your "plate" spinning on his stick, as a fallback position.
I suggest you pull waaaayyyy back from him, and stop being so friendly. CIVIL, and COURTEOUS, and UPBEAT is what you want to shoot for -- not nicey-nice.