But does "Urban Fantasy" just mean vampires and werewolves (and, by the by, other than in the World of Darkness and D&D context, I still have not written vampires. I might keep it that way) and other shapeshifters and fairies and things? Does Urban Fantasy cover fantasy things that happen, just in a modern context (it is evidently also called "Modern Fantasy", so yes).
So what is Magical Realism, then? Gabriel Garcia Marquez is the example author I see bandied around in this realm (and if you haven't read "A Very Old Man With Gigantic Wings", you should). Also movies like Pan's Labyrinth (which, arguably, was horror as well).
TV Tropes is a great website to reference for this sort of question, and covers more than TV or else I wouldn't be talking about it here in this context. From the TV Tropes article:
Which is actually a rather good description of The Last Song. Also of things like American Gods, Alice in Wonderland, and A Connecticut Yankee in King Arthur's Court. Are all of these books Magical Realism? Allegory? Are any of them Urban Fantasy?
Magical realism is often intentionally vague, and (as in Kafka's The Metamorphosis) it can be hard to determine if the protagonist actually is experiencing magical phenomena, or if he's just going insane.
Of course, Urban Fantasy also suggests, well, an urban environment. Like Detroit, so I'm cool with The Last Song (though I'm really thinking perhaps it's more Magical Realism as of this nanosecond). But what about Learn to Howl and its unfinished sequel which takes place largely on the road in the American South? And when it isn't on the road, it's at a deliberate remove from society, or grudgingly in suburbs? Is that no longer Urban Fantasy? It's certainly modern.
There's the broader umbrella of Speculative Fiction, which would cover Science Fiction, Fantasy (so all flavors thereof), etc. etc. but I noticed somebody on Absolute Write saying that was a derogatory term and that some people still take offense to it. Well. Apparently there's also Extruded Fantasy Product, which I literally never heard of until I Googled "speculative fantasy derogatory" or some such word salad. Now that, that sounds derogatory. Extruded. Really, a lot of people turn their noses up when they hear about "genre" of any stripe (meaning anything other than reality, I guess, but Jesus Christ the things some of them read regularly instead. Seriously. I see it almost every day at the library and it's hard to keep my mouth shut sometimes), so calling something speculative, to me, isn't an insult. It just means....not real? Perhaps something between the cracks, a little harder to define?
It's interesting, trying to box oneself in. Necessary, if you're, say, pitching to an agent. It's nice to know what your market is supposed to be. Comparative titles. Things like that. At least I know that, while "paranormal" might be all right (and "supernatural"), romance is probably never going to be there. I had an idea for it, sure, and it never left its first page. So, is it better for me to "rebrand" as a Magical Realism writer? Does it matter to, well, anybody? I mean, it doesn't right this second. But which pair of words can make or break a career? Can they? I obviously don't want people to assume I've written anything like Twilight, or Harry Potter. I mean, sure, I'd like piles of money to roll in. But my books are not those books. A few steps removed, perhaps, elements thereof.
But to me, my comparative titles are far more things like American Gods (which, among all the other things it was, was also a Road Trip novel). Alice in Wonderland. Maybe a little bit of The Haunting of Hill House. It's a patchwork, it's a grab bag. I've got so many influences, so much literature that I draw upon and revere.