I've been going round and round on this (and am posting a blog with my frustrations on the area tomorrow) but I'm about to throw my hands up when it comes to putting a genre on my current YA novel.
It's a novel dealing with sorcery and other magical elements (which makes me want to call it a fantasy) -- HOWEVER there are definite romantic elements and I know a major romance subplots isn't what I often find in my fantasy novels so I start leaning toward paranormal romance as there are elements of that genre in this -- HOWEVER it's originally set in NYC, then goes to a few made up cities which lends toward urban fantasy.
I've been circulating various blogs and wiki and I finally got close to calling this thing an Urban Fantasy as it sorta covers everything (and I also read a post on here and, quoting LisaAnn, she had a fabulous litmus test of "Are my main characters opposed and working hard to get together, or are they together and working hard to face an outside opposition?"
) in the novel in a nice, neat package.
I can say they're apart, THEN together and working hard to face an outside opposition. And if you're confused by the time you've reached this point in the post... welcome to my past several months. I know an agent/editor will ultimately label it what it SHOULD be, but I don't want to query agents who don't represent a genre and be THAT person who can't follow simple directions.
I think I'm close to calling this an Urban Fantasy -- or should I simply call it Fantasy with romantic elements?