As homeownership dreams continue to slip away from the middle and lower classes, those wealthy enough to purchase homes valued at $1 million or more—such as Senators John McCain and Barack Obama— have barely been deterred.
Only 14% of Americans purchase homes at or above $500,000, says NAR spokesperson Walt Molony, and many of them didn't take a big blow with the housing downturn. "We don't have hard data," says Molony, "but wealthy homeowners are probably holding pretty even — this is a pretty stable sector of the housing market." He adds that only 3% of buyers own three or more homes.
Both presidential candidates have purchased real estate worth more than $1 million in recent years. And, the McCain's own eight homes worth between $500,000 and about $3 million, according to politifact.com's http://politifact.com August 28 assessment. About 2% of all homes sold each year cost $1 million-plus, and that price bracket has not seen a drop in transactions during this housing market fallout, according to data from the National Association of Realtors (NAR).
The values of homes in the neighborhoods where McCain and Obama own residences have actually increased in value in the last five years, some upwards of 50%, according to data tracked by real estate site Zillow.com.
High-rise condo values at 1300 Crystal Drive in Arlington, Va. - where McCain calls home when Senate is in session - are up 55% from five years ago. "The building has been doing fantastic," says Long & Foster real estate agent Mohamud Ali, who listed a unit for $899,000 that's down the hall from McCain's. "The building is holding its value, and in fact had its highest sale only two months ago. The last unit I had similar to John McCain's unit sold for $1.2 million, which was the highest ever one of those buildings have gone for."
Real estate values are faring better in McCain's neighborhoods than Obama's. The junior Illinois senator purchased a home in the Kenwood neighborhood on the South Side of Chicago in 2005, where values declined 6.8% in the last year (they're still up 8.9% over the last five years).
If you're among the top 14% of the nation who can afford a home valued at $500,000 or more, and you're interested in having a U.S. presidential candidate as a neighbor, here are homes for sale in five of the same neighborhoods where Senators John McCain and Barack Obama own residences.
Chicago, Ill (Kenwood)
Neighbor: Barack and Michelle Obama
Price/Taxes: $1.5 million / $19,251
Property: 9 bedrooms, 6 1/2 baths, 8,115 square feet
Description: Located only a block away on the same street as Sen. Barack Obama's single-family home, this 3-story, detached 1896 home has more than 4 fireplaces and has a roof deck and skylights. There are 17 rooms total.
Source/agent: Centurion Realty & Estates, Michael Akinbode
Arlington, Va (Crystal City)
Neighbor: John McCain
Price/Taxes: $899,900 / $6,252
Property: 3 bedrooms, 2 1/2 baths, 2,139 square feet
Description: This unit is located on the same floor of the Crystal Gateway building as the main condo Sen. McCain calls home when he is in D.C. It has cherry wood cabinetry with granite counter tops in the kitchen and on the wet bar. There are also hardwood floors and panoramic views. The building has a sauna and indoor and outdoor pools.
Agent/Source: Mohamud Ali, Long and Foster Realty; and Crystal City Condos.
City/Area: Sedona, Ariz. (Cross Creek Ranch)
Neighbor: John and Cindy McCain
Price/Taxes: $2.94 million / $4,050
Property: 4 bedrooms, 3 1/2 baths, 5,580 square feet
Description: Located about 5 miles along Oak Creek from the McCain's six-acre ranch, this 2007 creekside home on 2 acres has covered patios off every bedroom. The master has a personal gym. The kitchen has a walk in pantry and there's a separate wine storage room, a billiards room and a home theater. There is also a guesthouse.
Agent/Source: Rick Wesselhoff, Coldwell Banker; Cross Creak Ranch Sedona
City/Area: La Jolla, Calif. (Camino del Oro)
Neighbor: John and Cindy McCain
Price/Taxes: $1.34 million
Property: 2 bedrooms, 2 baths, 1,308 square feet
Descrition: This third-floor condo is down the hall from the McCain's two-combined units. There are ocean views from every room of this renovated unit. It has hardwood floors, all granite counter tops and stainless steel appliances and glass bowl sinks. The 1972-built mid-rise building set on a beach, houses a clubhouse and exercise area. There are tennis courts and a swimming pool as well.
Source: Foreverviews.com; Meg Lebastchi, Coldwell Banker
City/Area: Coronado, Calif. (Coronado Island)
Neighbor: John and Cindy McCain
Price/Taxes: $2.75 million, 1,230 square feet
Property: 2 bedrooms, 2 baths
Description: This villa on the grounds of Hotel Del is just about 200 yards up the beach from one of the McCain's residences. It has separate suites with fireplaces and a kitchen with a sub-zero refrigerator. The living room includes a Bose sound system and flat screen television.
Source/Agent: Tom Owen, OwenProperties.com
