The numbers just keep going up. Home prices are defying gravity and expectations, which has some asking exactly how real they are and what is driving them. The answers lie, again, in the numbers, which vary depending on what particular report you choose.

Home prices nationally, including sales of distressed properties, rose 10.5 percent in March from a year ago, according to a new report from CoreLogic.

(Read More: Map: Tracking the US Real Estate Recovery)

That report is based on repeat sales of homes over time. Another widely-watched report, the S&P/Case-Shiller Home Price Index shows home prices were up 9.3 percent in February in the top twenty markets.

The number of homeowners falling behind on their mortgages for the first time has finally fallen close to pre-housing-crisis levels, but those already in trouble on their mortgages may still not be getting a fair shake from their lenders.

(Read More: Underwater Mortgages: CNBC Explains)

New York Attorney General Eric Schneiderman announced Monday he is suing Bank of America and Wells Fargo for, "339 violations of standards agreed to," under the National Mortgage Servicing Settlement. That settlement, signed by the nation's five largest lenders in early 2012, was the result of so-called "robo-signing," or foreclosure paperwork infractions and fraud.

Stronger housing means more jobs, not just construction jobs, all jobs. When consumers feel more confident about the value of their homes, they spend more money. Their homes, after all, are likely their single largest investment.

They may not take the money out of their homes, but they just feel more financially comfortable, and that comfort sends them out spending. They also spend more on home improvement.

"People are much more willing to part with their paychecks and spend when they know they are restoring the wealth in their house," said Diane Swonk of Mesirow Financial.

As home prices rise, there are fewer bargains in single family homes, but not fewer investors. Their ranks and property portfolios continue to grow. Last month Five Ten Capital, a Piedmont, California-based asset manager, inked a one hundred million dollar deal with Deutsche Bank to open a new fund to buy and manage single family rental homes, expanding Five Ten's range to Texas and Missouri.

"Obviously, home prices are up, so did you miss an opportunity? Yes, you'd have been better off buying a year ago than today, but we think for the most part we are in the third inning of this housing recovery," said Rob Bloemker, Five Ten's CEO.

Contracts to buy existing homes rose slightly in March, as a historically low supply of for-sale listings nationwide continues to plague the housing market. The Pending Home Sales Index from the National Association of Realtors increased 1.5 percent month to month. It is 7 percent higher than March 2012.

These numbers represent signed contracts, not closings, and are therefore an indicator of future final sales.

The U.S. Treasury's mortgage bailout is failing at an "alarming rate," according to a government watchdog, but architects of the four-year-old plan say that it is no worse than they expected.

The Home Affordable Modification Program (HAMP) was launched in early 2009 with the goal of helping 3 to 4 million borrowers avoid foreclosure. So far fewer than one million borrowers are in permanent modifications, and default rates on these modifications are high.

The nation's home builders continue to report solid growth this Spring. Michigan-based PulteGroup reported net new orders up 4 percent from a year ago. This after both Meritage Homes and Ryland Group reported even stronger new orders, up 35 percent and 54 percent respectively.

"The story sounds like a broken record," wrote Stephen East of ISI Group, which raised the price target on Meritage for the third time in three months.

East cited pricing power as a big turn for Meritage recently, and that can be said for all the big builders, as supplies of existing homes for sale continue to drop nationwide.

Stephen Paul said he is "confident" he will sell the brand new home that he just built in Bethesda, Maryland—a high-end suburb of Washington, DC.

The CEO of Maryland-based Mid-Atlantic Builders, Paul hasn't been building homes that didn't already have buyers in eight years. So-called "spec" homes (short for speculative) were all the rage for builders during the housing boom, but certainly not during the bust, when demand disappeared.

Home prices may be rising nationally, but real estate is still all about location. Value varies necessarily from place to place. So in an effort to gauge what you get for the money, CNBC is reviving a favorite feature—with a new twist.

The Million Dollar Home special is back, but now it is a contest. Six reporters, including yours truly, were sent to six secret locations and assigned to profile just one home listed for $1 million. We documented the interiors, exteriors, marketed features and one unique bonus offered by each home.

Like everything else in the spring, housing supply is supposed to grow. That is because warmer weather and the convenience for families of moving during the summer make spring the busiest home-buying season historically. That is not the case this year.

Home sales have been "stuck," according to Lawrence Yun, chief economist for the National Association of Realtors, because there is just not much out there to buy.

The number of homes listed for sale increased by just 1.6 percent in March from February, according to Realtors, but supplies are still 17 percent below where they were a year ago. Realtors usually see listings swell by about 100,000 in March, but this year they saw just 30,000 more. They are hoping to see 200,000 to 300,000 more in April, but that seems unlikely, given potential seller reaction to the recent fast price appreciation in the market.

(Read More: Home Resales Stall; Prices Rise Most Since 2005)