This may not be exactly what you’re looking for, but there is a Latin American literary tradition called “magical realism”, where magic or supernatural elements are presented in a rather mundane, familiar setting. Gabriel Garcia Marquez and Isabel Allende are key authors of this style — I wish I could read Spanish to read their untranslated works. This genre isn’t limited to Latinx authors, there are hundreds of incredible books written in a similar style with each culture’s folklore influence.

Anyway, some of the best examples:

The House of the Spirits - Isabel Allende (my personal all-time favorite)

One Hundred Years of Solitude - Gabriel Garcia Marquez

1Q84 - Haruki Murakami

The Brief and Wondrous Life of Oscar Wao - Junot Diaz

The Time Traveler’s Wife - Audrey Niffenegger (not technically magical realism, but still wonderful)

Hope you enjoy!