I’m no expert on this but my two cents
Appearing to be an oxymoron, “Magical realism” is a form of psychological defence against a world of harsh realities.
In it simplest form one can think of a lucky charm. It is unlikely that it actually has any physical effect, yet the wearer attributes good events to its wearing.
As I mentioned elsewhere I think Tarkovsky’s
Stalker is a great example of perception of the world based (almost) solely on mystical beliefs.
Magical realism is a way of
perceiving the world that interprets and enhances the everyday. The simplest things, like a bird landing on your hand, or a shaft of sunlight pushing through a thunderstorm, can trigger some primal and mystical connection to our pre technological roots.
Those of a more pagan bent tend to see the world and nature through more ancient glasses. Engaged with ‘signs’ and nature as a present and aware force.
If you have those feelings as, say, a city dweller, they can as easily latch on to contemporary magical moments like the reflection of skyscrapers in a windscreen or a murmuration of starlings over Kings Cross.
Magical realism, to me at least, can be something as simple as a changing perception of the people around us. Mike Leigh’s
“Life is Sweet.” For example achieves warmth in suburban mundanity. There is love you see, and that is where the magic comes in.