Magic realism is literature in which there are magical elements in an otherwise normal setting...

Magic realism was first used by German art critic Franz Roh in 1925.

Magic Realism.

Magic realism uses magical elements in a realistic setting to explore the complexities of the human condition. It often blurs the line between the ordinary and the extraordinary, highlighting themes of identity, memory, and cultural heritage. By incorporating fantastical elements, magic realism challenges readers to reconsider their perceptions of reality and encourages them to reflect on deeper truths about life and human nature.

I think it should be a genre. Here is the definition from Wikipedia: Magic realism, or magical realism, is an artistic genre in which magical elements or illogical scenarios appear in an otherwise realistic or even "normal" settings.