Yes, it means "Where we really/truly are". Res is a word that really cannot be described, you just must see how it is used. Res vera is "the true thing", and thus "the truth". Ablative pretty much turns that into an adverb, and choose the words at your best discretion. And maybe it's just me, but it seems a little odd to use the phrase with the verb esse.
flebile nescio quid queritur lyra, flebile lingua murmurat exanimis, respondent flebile ripae