I don't know about elves...but gnomes...kinda...
the thing i really beleive in are goblins, i live near the edge of the city so behind my house is a river and a forest. I've seen things in the woods that i cant really explain.
Well they're abbout 4 feet tall...well the best way to describe them is golem off of the lord of the rings, but they're eyes aren't as big and they have brown skin that is shiny but it looks more scaly then wet.
I see them all around my side of town late at night. They are fast runners and can jump considerable distances.