Strange birdy behaviour

My street is a lively place in the morning during the getting-ready-and-leaving-for-work-hours. Someone must have opened a home daycare a few doors down because for the past little while I've noticed the sound of dying cats outside while I eat my breakfast, only to realize it's wailing children being pulled down the street in wagons.

However, this morning, I noticed another sound that instantly grabbed my attention. I stepped out the front door in my gloves and jacket and there were these woodpeckers, all clinging to the side of one of the neighbour's houses on the other side of the street. Several other neighbours were out observing and commenting on the oddity as well.

The tree in front of this out looked dying or dead and they were going back and forth....finding bugs? hiding bugs? The siding that they were clinging to is stucco (and has asbestos in it, unfortunately). I have no answers...but here's a pic. So odd to see them doing this together.