Obama...our neighbor?

While watching the inauguration, I realized that ever since the election when one of our neighbors had an OBAMA sign in their yard, Knox has thought Pres. Obama lived down the street from us. He just saw him on TV and said, "Mom, there is Obama on TV! We should have been invited, we are neighbors!" When I said, "No, he lives in the White House." He replied, "Well ya, sometimes he does but he also lives down the street. He puts out the sign when he's home!" Not even sure where to start in explaining this one...