If I was describing the Carousel series to a friend I'd say "urban fantasy set in a small beach town in Maine" because "urban fantasy" to me means "faerie interacting with modern-day setting". But I don't think that works for folks that aren't wired like me. So. Contemporary Faerie? Alliterative but not much more. Quotidian Fantasy? -any excuse to use quotidian. :) If Contemporary Fantasy doesn't work because it describes a subset of which this book is not in, how about Present-day Fantasy?

I have no helpful suggestions, alas. Also, for me like most other folks, "mundane fantasy" is an oxymoron (Elrond prepping for an IRS audit?) and would turn me off a book which was labeled such.